Blue-Chip Company refers to those companies which are financially sound, reputed and widely recognised. Investing in this company is less risky than investing in mid cap and small cap companies. An important reason behind this is that blue-chip companies are less volatile compared other companies, but this doesn’t means that the returns provided by this company is less. The below image shows the return provided by SBI Blue-Chip fund in the past 10 year.
It is advisable to invest in the blue-chip company so that the risk exposure of your portfolio reduces. The below Info Graph will tell you about the key feature and reason to invest in the Blue chip company.
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