10,799.6536.0
Stock Analysis, IPO, Mutual Funds, Bonds & More

Is it a good time to invest in bluechip mutual funds?

ET Online|
Last Updated: May 29, 2020, 09.37 AM IST
0Comments

Summary If you have any mutual fund queries, message ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

iStock
iStock-1148424350
I wanted to check whether it is a good time to invest in Bluechip mutual fund in the current scenario? What duration should one have? And what return can I expect from my investment?
-Dushyyant Sa

Do you have a specific bluechip scheme in mind or are you talking about large cap mutual fund schemes that use bluechip in their name. For example, Axis Bluechip Fund, SBI Bluechip, among others. Please note some large & mid cap schemes also use bluechip in their name, but mostly preceded by emerging. For example, Mirae Asset Emerging Bluechip Fund, Principal Emerging Bluechip Fund, etc.

Large cap and large & mid schemes are meant for different set of investors. Large cap schemes are typically recommended to conservative equity investors. Since these schemes invest in very large companies, they are relatively stable and less volatile than other equity schemes. Conservative investors can invest in large cap schemes with a horizon of five to seven years.

Large & mid cap schemes are risky, as they have the mandate to invest a minimum of 35% of their corpus in mid cap stocks. Mid cap stocks are risky and volatile, that is why these schemes are recommended only to aggressive investors with a longer investment horizon of seven to 10 years.

Mutual funds do not offer any guaranteed returns. You can expect to earn around 10-12% from your equity investments over a long period. This is based on historical returns, but actual returns may vary depending on the performance of the stock market.

Best large cap mutual funds to invest in 2020
Best large & mid cap mutual funds to invest in 2020
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

Also Read

What is an equity mutual fund?

What are debt mutual funds?

What is a mutual fund?

Why are most mutual fund investors `aggressive’ these days?

Should I sell these mutual funds and invest elsewhere?

Mutual fund investors give middlemen the slip

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service