List of the Best Blue Chip Mutual Funds in India (2025)

Mutual funds have become a popular investment option in the financial market. A mutual fund provides investors with access to a mix of assets selected to achieve their long and short-term financial goals. One such type of fund that primarily invests in well-established companies is bluechip mutual funds. In this blog, we will learn about the best bluechip mutual funds, including their benefits, features, taxation, and more.

Best Blue Chip Mutual Funds in India (Based on 3Y CAGR)

Name	AUM (Rs. in cr.)	Expense Ratio (%)	CAGR 3Y (%)	CAGR 5Y (%)
Nippon India Large Cap Fund	35,699.99	19.89	19.97	0.66
HDFC Large Cap Fund	35,974.91	16.52	17.44	0.99
ICICI Pru Bluechip Fund	63,264.30	16.21	18.92	0.91
Baroda BNP Paribas Large Cap Fund	2,421.44	15.82	18.18	0.82
DSP Top 100 Equity Fund	4,529.98	15.64	15.41	1.08
JM Large Cap Fund	480.41	15.13	18.15	0.66
Edelweiss Large Cap Fund	1,100.22	14.77	18.04	0.61
Invesco India Largecap Fund	1,323.92	14.54	18.79	0.75
Taurus Large Cap Fund	49.02	13.99	14.45	2.45
Bandhan Large Cap Fund	1,768.88	13.46	17.75	0.92

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data on the top blue chip mutual funds in India list is from 9th January 2025 and the data is derived from Tickertape Mutual Fund Screener. Please note that the above-mentioned funds belong to large-cap category and growth plan.

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate stocks with over 50+ filters and parameters.

Overview of the Top Blue Chip Funds in India

Nippon India Large Cap Fund

Launched in August 2007, the Nippon India Large Cap Fund is a mutual fund that primarily invests in large-cap companies. The fund aims to deliver consistent returns by focusing on well-established businesses with strong market capitalisation and growth potential.

As of 9th January 2025, the fund has an Asset Under Management (AUM) of Rs. 35,699.99 cr. Its 3-year Compound Annual Growth Rate (CAGR) stands at 19.89%, while its 5-year CAGR is 19.97%. The fund has an expense ratio of 0.66%.

HDFC Large Cap Fund

The HDFC Large Cap Fund was launched in October 1995 and is focused on investing in large-cap companies with a strong emphasis on long-term capital appreciation. The fund seeks to maintain a diversified portfolio while targeting stable growth opportunities.

As of 9th January 2025, the fund has an AUM of Rs. 35,974.91 cr. Its 3-year CAGR is 16.52%, and its 5-year CAGR is 17.44%. The expense ratio of the fund is 0.99%.

ICICI Prudential Bluechip Fund

Launched in May 2008, the ICICI Prudential Bluechip Fund invests predominantly in large-cap stocks, targeting businesses with robust fundamentals and a proven track record. The fund is designed for investors seeking long-term wealth creation through equity exposure.

As of 9th January 2025, the fund boasts an AUM of Rs. 63,264.30 cr. Its 3-year CAGR is 16.21%, and its 5-year CAGR is 18.92%. The fund has an expense ratio of 0.91%.

Baroda BNP Paribas Large Cap Fund

Introduced in March 2010, the Baroda BNP Paribas Large Cap Fund focuses on large-cap equities with a balanced strategy to achieve consistent returns. It is ideal for investors looking for stable growth from high-quality companies.

As of 9th January 2025, the fund’s AUM stands at Rs. 2,421.44 cr. It has recorded a 3-year CAGR of 15.82% and a 5-year CAGR of 18.18%. The fund carries an expense ratio of 0.82%.

DSP Top 100 Equity Fund

Launched in February 2003, the DSP Top 100 Equity Fund primarily invests in large-cap companies, aiming for steady growth through diversified equity exposure. The fund is designed for long-term wealth creation.

As of 9th January 2025, the fund has an AUM of Rs. 4,529.98 cr. Its 3-year CAGR is 15.64%, and its 5-year CAGR is 15.41%. The expense ratio of the fund is 1.08%.

JM Large Cap Fund

The JM Large Cap Fund, launched in September 2007, invests in large-cap companies to provide investors with stable returns over the long term. The fund focuses on businesses with high market capitalisation and growth potential.

As of 9th January 2025, the fund has an AUM of Rs. 480.41 cr. It has achieved a 3-year CAGR of 15.13% and a 5-year CAGR of 18.15%. The expense ratio for this fund is 0.66%.

Edelweiss Large Cap Fund

Launched in December 2007, the Edelweiss Large Cap Fund invests in a portfolio of large-cap stocks, offering investors an opportunity for long-term capital appreciation. The fund emphasises businesses with strong growth potential and stability.

As of 9th January 2025, the fund’s AUM is Rs. 1,100.22 cr. It has a 3-year CAGR of 14.77% and a 5-year CAGR of 18.04%. The fund has an expense ratio of 0.61%.

Invesco India Largecap Fund

The Invesco India Largecap Fund was launched in August 2007 and focuses on investing in large-cap companies to achieve consistent long-term returns. The fund targets businesses with strong fundamentals and market dominance.

As of 9th January 2025, the fund manages an AUM of Rs. 1,323.92 cr. It has recorded a 3-year CAGR of 14.54% and a 5-year CAGR of 18.79%. The expense ratio of the fund is 0.75%.

Taurus Large Cap Fund

Launched in August 2012, the Taurus Large Cap Fund invests in large-cap stocks to deliver consistent growth for investors. The fund focuses on stability and long-term wealth creation through equity investments.

As of 9th January 2025, the fund has an AUM of Rs. 49.02 cr. Its 3-year CAGR is 13.99%, and its 5-year CAGR is 14.45%. The fund has a higher expense ratio of 2.45%.

Bandhan Large Cap Fund

The Bandhan Large Cap Fund was launched in December 2017 and aims to provide long-term capital appreciation by investing in large-cap companies. The fund adopts a diversified approach to mitigate risks and achieve stable returns.

As of 9th January 2025, the fund’s AUM is Rs. 1,768.88 cr. It has recorded a 3-year CAGR of 13.46% and a 5-year CAGR of 17.75%. The expense ratio is 0.92%.

What are Blue Chip Funds?

The blue chip fund meaning is an equity scheme that offers its investors a portfolio of stocks, including financially sound and prominent companies. These companies are well-established, often leading their industries with strong market positions, reliable management, and competitive advantages. However, as per SEBI norms, bluechip isn’t an official category. Most mutual fund advisors and fund houses consider bluechip as a synonym for large cap funds.

How Do the Best Blue Chip Mutual Funds Work?

Blue chip mutual funds primarily invest in companies with large market capitalisation and strong financial performance. Fund managers, acting on behalf of investors, curate a diversified portfolio by strategically selecting the top 100 market-cap companies. The stocks in blue chip funds aim to deliver high returns.

What is the Difference Between Large Cap and Blue Chip Funds?

Aspect	Large Cap Funds	Blue Chip Funds
Definition	Mutual funds that invest predominantly in the top 100 companies by market capitalisation, as defined by the Securities and Exchange Board of India (SEBI).	Funds that invest in well-established, financially sound companies with a history of reliable performance are often referred to as “blue-chip” companies.
Focus	Emphasises growth and stability by investing in large, reputable companies.	Concentrates on high-quality, mature companies that are leaders in their industries.
Risk Level	Moderate: large-cap companies are generally stable, but market fluctuations can affect returns.	Lower compared to other equity funds due to the presence of resilient and financially robust firms.
Examples of Companies	Reliance Industries, HDFC Bank, Infosys.	Tata Consultancy Services (TCS), Hindustan Unilever, Asian Paints.
Investment Horizon	Best suited for medium to long-term investors (3–5 years or more).	Ideal for long-term investors seeking stable returns and wealth preservation.
Volatility	Relatively lower than mid-cap and small-cap funds but can still fluctuate with market trends.	Generally lower due to the presence of companies with consistent performance.
Performance Potential	Potential for significant growth over the long term, depending on market conditions.	Offers consistent and reliable returns, though growth might be steadier than large-cap funds.

So, analyse and research more about equity mutual funds to make a sound decision.

How to Invest in the Best Blue Chip Mutual Funds?

You can easily invest in blue chip mutual funds by following these steps:

• Visit the mutual fund platform and login in your existing demat account. If you don’t have one, you can quickly open a demat account on smallcase by providing the necessary documentation and details.
• Next step is to identify the best bluechip funds through comprehensive research. You can easily select and learn more about the top-performing blue-chip mutual funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With the help of 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
• Once you’ve selected and made a list of the best blue chip mutual funds, access your account and navigate to the ‘Mutual Funds’ section. Then, decide whether to invest through a Systematic Investment Plan (SIP) or make a one-time lump-sum investment. If opting for a blue chip SIP, determine your monthly investment date, input the desired amount, and select the preferred payment method.

The key is to thoroughly research and evaluate the best blue chip mutual funds before investing, taking into account factors like performance, risk, and costs. This may help you make an informed decision aligned with your financial goals and risk tolerance. However, before investing, it is worthwhile to consult a financial advisor.

Features of the Best Blue Chip Mutual Funds

Here are a few of the key features of the best blue chip mutual funds:

• Professional Management: The blue-chip mutual funds are managed by fund managers. These professionals conduct thorough research and analyse the market conditions to select the best blue chip stocks for the fund’s portfolio. Professional management adds a layer of confidence for investors entrusting their capital.
• Dividend Potential: Many blue chip companies are known for paying regular dividends. This provides investors with a steady income stream to complement the potential for long-term capital appreciation.
• Expense Ratios and Fees: Fund houses charge a fee to manage your investments in top blue chip funds. This fee is known as the expense ratio. It amounts to a certain proportion of the fund’s total assets. SEBI has capped the expense ratio at 2.5%, ensuring no company can charge more than this limit for managing your investment portfolio. However, it is wise to research and look for a scheme that offers a lower expense ratio to have maximum returns.
• Lower Risk: Bluechip mutual funds are generally seen as lower risk than other mutual funds. Since they focus on large, established companies, they may help reduce the potential for extreme market volatility.

Benefits of Investing in the Best Blue Chip Mutual Funds

Here are the potential benefits of investing in the best large cap funds:

1. Capital Growth:
Blue chip funds can be an effective way to grow your capital over time. They typically invest in large, reputable bluechip companies with a proven track record of consistent performance. These firms are often considered industry leaders with strong brand recognition, reliable earnings, and the ability to weather economic downturns. Many of these companies are part of the top 10 blue chip stocks in India, providing robust opportunities for capital appreciation.

2. Liquidity:
The bluechip mutual fund meaning includes their ability to be easily traded. Blue chip funds offer high liquidity, enabling you to buy and sell them whenever needed. This flexibility can help you actively manage your portfolio and respond to changing financial circumstances, making them a convenient investment choice.

3. Stability:
Investing in a bluechip mutual fund exposes you to a diversified portfolio of financially strong companies. This ensures stability and reduces risk compared to investing in individual stocks or speculative funds. These funds often include investments in leading blue chip India companies, offering a strong foundation for long-term financial security.

What are the Returns on the Best Bluechip Mutual Funds & How are they Calculated?

Calculating returns on the best blue chip mutual funds is a straightforward yet insightful process. Returns are primarily determined by tracking the fund’s Net Asset Value (NAV) over a specific period. NAV is the per-share market value of all the fund’s securities, accounting for expenses and liabilities.

Total returns include capital appreciation and income generated by the fund’s assets. Capital appreciation arises when the market value of the fund’s investments increases, while income includes dividends and the blue chip fund interest rate earned. These returns are then expressed as a percentage, indicating the growth or decline in the fund’s overall value.

Investors often rely on standardised metrics such as the Compound Annual Growth Rate (CAGR) to gauge a fund’s performance over longer periods. CAGR considers the effect of compounding, providing a more accurate representation of the fund’s average annual growth.

It’s crucial to note that past performance does not guarantee future results. Investment decisions should be based on a thorough understanding of a fund’s strategy, risk profile, and alignment with individual financial objectives. By understanding how returns are calculated, investors can make informed decisions when selecting the best blue-chip mutual funds for their portfolios.

How to Choose the Best Blue Chip Mutual Funds for Investing?

When selecting blue chip mutual funds, it’s important to approach it cautiously. The first step would be to set clear and achievable financial goals for your investments. This means that whether you’re saving to buy a new home or planning for retirement, having specific goals will guide your investment choices. Once you clearly define your financial goals, you should regularly review the fund’s performance, the companies it invests in, and its expense ratio. At last, you can reinvest dividends and capital gains from your blue chip mutual funds, as this would allow your returns to grow through compounding, potentially boosting your overall gains. This strategy is especially beneficial for long-term investors.

Who Should Invest in the Best Blue Chip Mutual Funds?

1. Conservative Investors

Conservative investors looking for stability may find blue chip mutual funds in India suitable. These funds focus on large, established companies, providing steady returns. For those wondering, what is blue chip mutual funds, these funds are known for their ability to deliver consistent performance with lower risk.

2. Long-Term Investors

If your goal is long-term wealth accumulation, consider investing in the top 10 blue chip mutual funds in India. These funds are designed to offer consistent returns over time, making them ideal for long-term goals. You can also consider the best bluechip fund for SIP to invest systematically.

3. Moderate Risk-Takers

Moderate risk-takers looking for a balance of growth and stability may find the best bluechip fund appealing. These funds focus on companies with strong market leadership. If you’re wondering which blue chip fund is best, you can explore the top 5 bluechip fund options for a balanced approach.

4. New Investors

New investors looking for a safe entry into the stock market can opt for bluechip mutual funds India. These funds invest in well-established companies, minimising the risk for beginners. If you’re new and curious about what is bluechip mutual fund, it refers to mutual funds that focus on blue-chip stocks, offering a safer investment path.

5. Retirement Planners

Investors planning for retirement can benefit from the stability of blue chip funds India. These funds invest in high-quality companies, ensuring both safety and moderate growth. If you’re evaluating options, you might ask what are bluechip funds or what is blue chip fund — they are mutual funds that focus on market leaders with reliable returns.

6. Dividend Seekers

For those seeking regular income, blue chip investment could be a good option. Blue-chip companies tend to offer stable dividends, making them attractive for investors who prioritise income along with growth.

Risks Involved While Investing in the Best Blue Chip Mutual Funds

Let’s look at the potential risks of investing in the best blue chip funds.

• Market Risk: While blue chip mutual funds are generally considered stable and low-risk investments, it’s important to understand that even the best of them are susceptible to market volatility. Thus, one can expect short-term volatility in even the best emerging bluechip funds and avoid panic selling during market downturns.
• Performance in Downturns: When evaluating blue chip mutual funds, consider how they have performed during past recessions or market crashes. Although these funds are generally more resilient than other investments, market conditions can still impact their performance.

Taxation on Blue Chip Mutual Funds as per the Union Budget 2024

Blue-chip mutual funds are taxed according to their asset allocation and holding period. Being aware of these tax implications is essential for making informed financial decisions. The Union Budget for 2024-25 has made significant changes to the taxation on equity mutual funds. Here we have listed these changes, along with the revised tax rates for equity mutual funds:

Short-Term Capital Gains Tax

Any gains made when holding equity mutual funds for less than 12 months are considered short-term capital gains. The Union Budget 2024-25 increased the tax rate on these gains to 20%. The STCG tax rate was previously 15%. 

Long-Term Capital Gains Tax

For equity mutual funds held for over a year, gains are classified as long-term capital gains. The new budget introduces these key changes:

• Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
• Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
• Indexation: The government has removed the benefit of indexation, which allowed investors to adjust the purchase price for inflation for all asset classes, including equity mutual funds.

Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 12 months	15%	20%
Long-Term Capital Gains (LTCG)	More than 12 months	10%	12.50%

Factors to Consider Before Investing in the Best Blue Chip Mutual Funds

Here is a list of factors that you can consider before investing in the large mutual fund companies, including top bluechip mutual funds and the best large cap mutual fund in India:

1. Consider Fund Size

While larger funds may seem more established and appealing, they can also impact the fund’s diversification, costs, and liquidity. However, you should be mindful of the increased risk that comes with larger investments, especially during market downturns. This holds true whether you’re investing in a bluechip mutual fund list or exploring bank blue chip fund options.

2. Evaluate Expense Ratio

When selecting blue chip mutual funds India, be sure to enquire about the expense ratio. Many mutual fund investors choose a fund with a low expense ratio because it uses less of the fund’s assets for operational expenses, potentially leading to higher returns. For instance, if you’re considering the top 3 mutual funds in India, evaluating the expense ratio is critical.

3. Fund Performance

It is important to review a fund’s track record over the last 3-5 years or more to understand how it has performed compared to similar funds and its benchmark index. Although past performance doesn’t guarantee future returns, it gives you insights into how the fund has been performing. For example, reviewing the bluechip fund last 10 years return or performance data for the top 10 blue chip stocks in India can provide valuable insights.

By taking these factors into account, you can make informed decisions when investing in bluechip companies or the top bluechip mutual fund tailored to your financial goals.

To Wrap It Up…

To conclude, bluechip mutual funds is an equity scheme that invests in large, established and financially stable companies. These funds have the potential to offer capital appreciation, stability, and regular dividends, due to which they are known to be relatively less risky. However, prioritise thorough research and/or consult a financial advisor before making an investment decision.

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Frequently Asked Questions on the Best Blue Chip Mutual Funds