What is Bluechip Fund?
Financial experts often opine that you can make your money work to make more cash. Most people invest money in a plethora of sectors with the hopes of getting high returns. Real estate, share market, gold, stocks, and bonds are some of these.
But the return opportunities depend on the development of international trade and commerce. Investors cannot predict the ups and downs. However, you can consult with investment experts to safeguard your money.
If you are looking for a safer alternative, then you can invest money in financial institutions. It is here that the banks can come to your aid. Most banks offer investment policies for their clients. They offer high-interest rates to encourage people to make deposits. If you desire safety and high return assurance, then invest in the Bluechip fund.
Origin of the Name “Bluechip”
What is the first thing that pops in your mind when you hear the term blue-chip? Poker players know that the blue-chip has the highest value. The top-notch funds and shares also use the term to highlight their importance in the financial market. A quick search on the virtual platform will offer details about the blue-chip investment programs. Financial advisors suggest that investment enthusiasts must opt for the best bluechip fund.
Understanding Bluechip Funds
Registered financial institutes, which have a high reputation in the economic sector, can maintain these funds. The commercial organization must have sound financial resources. When you invest money in the Bluechip Funds, then the banks, in turn, use the money to fund reputed companies. Bluechip Funds offer financial assistance to those agencies which have a good credit record. It assures the fund management companies that it will get a good return on the invested sum. Thus, the general investors will get their money and a beneficial interest after maturity tenure. A recent survey shows that the popularity of the SBI bluechip fund is more than other national or private banks.
Features of the Bluechip Investment Programs
Reduce the negative impact of market instability
As mentioned; the financial market is susceptible to ups and downs. Investing in secure commercial programs will curb your financial losses if the market crashes. Under such circumstances, the banks will pay back as much as possible to the investors.
Investment portfolio diversification
Economists and investment experts highlight that it is best not to put your money in a single sector. Investment diversification can save your money significantly. If you put money in the blue-chip investment plans, then you can diversify your portfolio. Opting for the ICICI Prudential Bluechip Fund Direct-Growth is a sound way to expand your investment portfolio.
Regular dividend payment
If you want a steady cash inflow, then investing in these financial programs is the best option. Bluechip investment provides dividends in the investors’ bank accounts on a regular basis. Thus, you can have access to ready cash whenever you want.
The financial organization must have the necessary infrastructure to offer and manage these investment programs. For instance, the Axis bluechip fund is governed by the top executives of the bank. They keep a close tab on the share market and take calculated investment decisions to safeguard the interests of their investors. Failure to do so can hamper its market reputation. It is the last thing that any bank will want.
Only government certified and top-notch financial institutes get permission to set up blue-chip programs. Thus, the management agency must abide by the government’s fiscal policies. It bars the find manager from taking arbitrary decisions. Following government rules offer better security to the investor’s money.
What Investors should partake in Bluechip Funds?
If you analyze the bluechip investment plans, you will realize that these are different from other asset management programs. If you are new in this sector or have a specific budget, then it is best not to invest in Bluechip funds. A quick look at the SBI Bluechip Direct Plan Growth scheme highlights that the starting dib is rather high. As the name suggests, you need a considerable amount to invest in Bluechip investment programs. Thus, it is safe to opine that it is not for all investors.
It does not mean you have to wait until you save a sufficient amount. Some of the mid-cap investments allow the investors to pool money in the medium-sized but growing companies. Such investment programs are termed as Mirae Asset Emerging Bluechip funds.
This investment scheme was implemented in 2010. It provides a playing field for those with comparatively low investment capabilities. The Mirae Asset Emerging Bluechip fund puts the investment sum in a moderate crisk zone. If you are interested in investing your money for a longer tenure, then it is an ideal option.
It is best to consult with the experts before you make a final decision. Most banks have launched their apps. One can gather information from these banking applications, as well.