Posted by Ravikumar.

Are you Afraid of Market Crash ?

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Are you afraid of market crash?         This is the obvious question an investor or trader comes across the market. The question is relevant also. Market has already recovered from March 2020 crash. It has surged to new highs but from February it is going no where. Though the market has recovered but wrath of Covid-19 has not left its place. Wave after wave its showing its new face. Vaccine production is under process but its not up to optimum level. Production needs to be done on a war basis. Although the vaccines will be delayed will have to take care of our self. Fear of Corona is still not went away. It is reflected in stock market. On first wave the market fell drastically. after the crash in 2020 market started recovering after 2 month and came at is original point on December 2020. But after Feb 2020 its not going anywhere. The Third wave is ahead of us and vaccine is not handy. What should investors Do? Long term investors must stay calm and stay invested. Because we are ha

What is Bluechip companies and bluechip funds? | Why we should invest in it?

 

 

bluechip market large cap
 

Now and then we have heard or read about bluechip stocks or bluechip funds. Have you ever wondered what is blue-chip and from where this word came from?

This word came from gambling. In casinos, there are different colored chips, like red, green, and blue. Each colored chip reflects the value in currency. For buying a chip it can be called a token amount. 

 

 Meaning of bluechip

Bluechips are trust worthy, stable, reliable. They are the highest denomination in games of poker but now this jargon is widely getting used in investment and financial sectors.

 


 

Why a company is called a bluechip company?

For a company to be called bluechip it should fall into certain categories. The company should have high trust in the market, high volume in terms of cash and equity, future plans are reliable. There are 5000+ companies listed on the stock exchange in India. They are divided into 3 categories.

 

      a. Large-cap companies

      b.Medium-cap companies

      c.Small-cap companies.

 

Among large-cap companies, the most trustworthy and valuable companies are categorized as bluechip companies. The list is stated below.

 

  1.  Reliance Industries
  2. Hindustan Unilever Limited (HUL)
  3. Indian Tobacco Company (ITC) Limited
  4. Tata Consultancy Services (TCS)
  5. Oil and Natural Gas Corporation (ONGC)
  6. Housing Development Finance Corporation (HDFC)
  7. Infosys
  8. Eicher Motors
  9. Sun Pharmaceuticals Industries Limited
  10. State Bank of India (SBI)

What is a bluechip fund?

A fund that is created using bluechip stocks is called a bluechip fund. Below stated are the examples of bluechip funds.

  1. Kotak Bluechip Fund
  2. SBI bluechip fund
  3. Canara Robeco Bluechip Equity Fund.
  4. Axis bluechip fund
  5. ICICI Prudential Bluechip Fund

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All these companies have high brand value, high trust, high cash or equity flows. Most of the people of India are dependent either on their products or services. These companies are household names and are being trusted by generations. 

Happy investing.

 

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