Ask ET Mutual Funds: Which bluechip fund should I choose?

I am interested in investing in SBI Blue Chip Fund, but I want my principal to be safe. Which bluechip fund should I choose?
--Sarita SG

Investing in stocks is risky. Equity mutual fund schemes, including the ones investing in bluechip stocks, do not guarantee any returns or even promise safety of your investment. However, countless studies prove that if you stay invested in equity schemes for a long period, they have the potential to offer superior returns than other assets.

You are right in assuming bluechip funds that invest in largecap companies are safer to invest than small and mid-sized companies. These large companies weather downturn in the market better than others.


If you can stay invested for five to seven years, you can go ahead with your investments in SBI Blue Chip Fund. The scheme may offer you attractive returns over a long period.

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