Blue chip stock is very simply put, the stock of an established company that has stable earnings. It is the
kind of stock that does well even in a volatile market. These stocks also pay regular dividends.
Blue chip stocks are very important while creating a diversified investment portfolio. It is a type of
common stock. On purchasing these stocks, the investor becomes a part owner of the company.
These also turn out to be a very safe form of investment as they offer great long term rates. Blue chip
stocks normally feature in the investment portfolios of non- profit organizations and conservative
individuals.
There are a number of Mutual fund companies in India that trade in blue chip stocks like HDFC, ICICI,
Birla Sun Life and Reliance Mutual Funds. Of these companies, Reliance Mutual Funds is one of the
fastest growing companies in the country. They offer investors a well rounded portfolio of investments
that meet the individual objectives of each investor.
