Hello everyone! Today we shall start with the topics of mutual funds. We shall discuss what bluechip stocks are, the features of these stocks, if as an investor, one should invest in these, and what would be the returns that I can expect.
What are bluechip stocks?
Bluechip stocks are those companies which are very well established financially and are having the good consistent records of the profits in the previous years. These companies are very stable and has the least chance of going bankruptcy. Even a loss or deal break of few thousand crores wouldn’t affect the company invariably, considering the mammoth size of the company. Some of the indian bluechip companies are tata group, reliance etc.
Those are the industry leaders with ideal and successful business model. There history/ track record would be way too good for anyone to track at, paying reasonable dividend to the stock holders. Though these bluechip stocks are far from failing, it is not always true. The example of fall of General motors and Lehman brothers is an example of a fail too. But, exceptions are not examples.
Best indian Bluechip stocks:
Reliance industries limited : Reliance is india’s largest company. It has diversified in almost every sectors, be it communication, textiles, petrochemicals, e-commerce etc. They are penetrating the markets in every sector possible. They have also rolled out the 5G services from the JIO info communications lately. Though their majority of the revenues come form oil sector, they are leading in communication and several other sectors as well. So, investing in these bluechip stocks can be a safe bet. Though the returns may not be as high as smallcase stocks, who make or break in a week, they are not as risky as them either. The company has plans to achieve carbon neutrality by 2035 thereby focusing on diversifying across energy and other industries while continuing to invest in the oil business.
Tata Consultancy services: This is the worlds largest IT service provider. The market cap of TCS is the largest in indian IT sector. They have the attractive profit booking track record in last several years. They earn from the several sectors if the IT market such as Retail, BFSI, communication, Life sciences, Media, Manufacturing, Logistics etc. Their profit to earning ratio is close to 30.
HUL (Hindustan unilever limited)
This is one of the largest FMCG company in india. They manufacture several products that include beverages, sanitary, cleaning, personal care etc. The Indian FMCG industry is corroborated by both organized and unorganized players across segments and products and HUL continues to face stiff competition with the entry of new players including multinationals in all its major segments such as soaps and detergents, personal care products and packaged foods. However, HUL’s strong financial risk profile and its leading position in the domestic FMCG industry would help to maintain its leadership position and tide through any economic slowdown/ crisis.
These are some of the many Bluechip companies of india. Feel free to comment your favorites. Now that you are aware of what they are, go ahead with the careful analyzation of these companies. These companies are called as the stead growth, low risk stocks.
Together!!