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

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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.
  • 13.67%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.11 YearsTime taken to double money
SBI Bluechip Fund-Growth ★★★★★
  • 6.84%Annualized Return for 3 year
  • >3 years Suggested Investment Horizon
  • 4.11 YearsTime taken to double money

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
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