Are blue chip stocks good for long term?
According to Hackmann, the answer is “generally, yes.” However, he said, “it's important to remember that sometimes today's blue chip is tomorrow's 'also-ran. ' Companies that were considered blue chips in their day can disappear over time as they are passed by in the evolution of commerce and technology.
Blue-chip stocks are from companies that are large, well-established, and financially sound. These companies have strong brand names and reputations, and they generate dependable earnings. Blue-chip companies usually boast consistent dividends and are often considered to be less risky, given their financial stability.
Frequently Asked Questions About Bluechip Mutual Funds
Yes, blue chip funds are generally considered good investments for risk-averse investors who are looking to build a corpus for the long term. They focus on well-established, financially stable companies, offering stability and the potential for consistent returns.
- Bond funds.
- Dividend stocks.
- Value stocks.
- Target-date funds.
- Real estate.
- Small-cap stocks.
- Robo-advisor portfolio.
- Roth IRA.
Investing in blue chip stocks is a good idea for people who want to grow their money over a long time. These are strong and reliable companies that usually do well over many years, making them a safe choice for people who are not in a hurry to make quick money but want to see their investment grow steadily.
Hands-off investing with blue chip funds
These investment vehicles also tend to be less volatile than individual stocks, making them particularly appealing to people who are retired or nearing retirement.
- The Best Blue Chip Stocks of July 2024.
- Apple Inc (AAPL)
- JP Morgan Chase & Co (JPM)
- Walmart Inc (WMT)
- Procter & Gamble Co (PG)
- Johnson & Johnson (JNJ)
- AbbVie Inc (ABBV)
- Coca-Cola Co (KO)
Blue chip stocks are seen as relatively safe investments with proven track records of success and stable growth. Blue chips are reliably stable but they're unlikely to generate the same high returns as potentially riskier investments.
- Nippon India Large Cap Fund. ...
- JM Large Cap Fund. ...
- ICICI Pru Bluechip Fund. ...
- HDFC Top 100 Fund. ...
- Baroda BNP Paribas Large Cap Fund. ...
- Invesco India Largecap Fund. ...
- Edelweiss Large Cap Fund. ...
- Tata Large Cap Fund.
Stock | Implied Upside* |
---|---|
Meta Platforms Inc. (META) | 25.8% |
Tesla Inc. (TSLA) | 4.5% |
JPMorgan Chase & Co. (JPM) | 9.6% |
Exxon Mobil Corp. (XOM) | 12.0% |
Which stock will boom in 2024?
S.No. | Name | CMP Rs. |
---|---|---|
1. | Man Infra | 201.45 |
2. | BLS Internat. | 365.60 |
3. | Black Box | 525.95 |
4. | RHI Magnesita | 602.95 |
- Growth Stocks. Growth stocks represent companies expected to grow at an above-average rate compared to other companies. ...
- Real Estate. ...
- Junk Bonds. ...
- Index Funds and ETFs. ...
- Options Trading. ...
- Private Credit.

Blue chip stocks are usually less risky and thus considered safer than other stock-based investment options. That's because one of the major determining factors of a blue chip stock is that it must be a well-capitalized company, meaning it should have the financial fortitude to endure an inevitable economic downturn.
Slow Growth Rate
Since the businesses of blue chip companies are already mature, they have little future growth potential. This can limit their ability to appreciate in value over time.
In general, the average rate of return on blue-chip stocks is around 10%, which is similar to the indices that they are featured on. A good indicator of blue-chip status is if the company is listed on a renowned stock index.
Name | Symbol | % Loss |
---|---|---|
Bajaj Finance | BAJFINANCE | -10.37 |
Zee Entertainment Enterprises Ltd. | ZEEL | -8.51 |
Bajaj Finserv Ltd. | BAJAJFINSV | -6.82 |
Godrej Consumer Products Ltd. | GODREJCP | -6.41 |
- BHP Group Limited (ASX:BHP) Market cap: A$ 239.14B Index Weight: 10.95% Dividend Yield TTM: 8.48% 5-year average dividend yield: 6.7% Payout ratio: 90.26% ...
- Commonwealth Bank of Australia (ASX:CBA) ...
- CSL Limited (ASX:CSL) ...
- National Australia Bank Limited (ASX:NAB) ...
- Westpac Banking Corporation (ASX:WBC)
Stock | Sector | Dividend Yield |
---|---|---|
Altria Group Inc. (MO) | Consumer defensive | 8% |
Western Union Co. (WU) | Financials | 7.5% |
Coca-Cola Co. (KO) | Consumer defensive | 3% |
JPMorgan Chase & Co. (JPM) | Financials | 2.2% |
S.No. | Name | Profit growth % |
---|---|---|
1. | Ksolves India | 32.84 |
2. | Nestle India | 18.82 |
3. | Network People | 225.85 |
4. | Tips Industries | 66.15 |
- Indian Energy Exchange Ltd. ...
- HDFC Asset Management Company Ltd. ...
- Nippon Life India Asset Management Ltd. ...
- Central Depository Services (India) Ltd. ...
- Aptus Value Housing Finance India Ltd. ...
- SJVN Ltd. ...
- Sun Tv Network Ltd.
What is the best stock in the last 50 years?
ASSET | DATE | % RETURN |
---|---|---|
Microsoft (MSFT) | 7/28/1974 - 7/28/2024 | 777,358.87% |
Johnson Controls International (JCI) | 7/28/1974 - 7/28/2024 | 654,852.38% |
UnitedHealth (UNH) | 7/28/1974 - 7/28/2024 | 516,887.3% |
Danaher (DHR) | 7/28/1974 - 7/28/2024 | 393,448.85% |
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
- Apple Inc. (ticker: AAPL)
- Enterprise Products Partners LP (EPD)
- Johnson & Johnson (JNJ)
- JPMorgan Chase & Co. (JPM)
- Prologis Inc. (PLD)
- Southern Co. (SO)
- Target Corp. (TGT)
The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund.
Blue chips are considered safe investments due to their longstanding financial stability.