Blue chip mutual funds
Following my earlier posts on what are blue chip stocks and what is the definition of blue chip stocks here is another thing which the investors should be able to use for investing in the blue chip stocks and that is the blue chip mutual funds.
These blue chip mutual funds are the funds which consist solely of blue chip companies.
The best among them is the Fidelity Blue Chip Growth (FBGRX). They have very aptly said that this investment seeks growth of your money over the longer term. They also say that they will invest in well known established companies.
This is consistent with what is meant as bleu chip companies and as I said earlier that the best thing to look is the investing in the blue chip companies for long term as that is how your money will grow as these companies tend become more larger and well manage over the longer term and in short term they may not be able to get you good returns.
The term originated from the game of poker where the blue chips are the highest value stocks. That said there have been various definitions of blue chip but the best blue chip stocks are the Dow Jones blue chip stock index companies.
Now again different mutual fund managers may have different strategies and they may also have a different connotation of what is a blue chip fund but in general they are large caps as all other investors have been buying these stocks.
An example is T. Rowe Price Growth Stock Fund (PRGFX) and this fund has the best of the best stocks in it. Another good blue chip fund is Reynolds Blue Chip Growth(RBCGX).
Some examples of blue chip companies are the
Intel (INTC)
Wal-mart (WMT)
Research in Motion (RIMM)
Again the industry segments may vary and can range from consumer services to industrial materials to hardware to energy stocks.
Always go for the no load mutual funds but if you absolutely have to invest in the mutual funds which are the loaded ones then you for a systematic investment plan.
Related posts:
- Blue chip companies – Top Australian blue chip companies
- Investing in Stock Market through Mutual funds – Introduction to Mutual Funds
- Top blue chip stocks and investing blue chip stocks for long term
- Indian Blue chip companies
- What are blue chip stocks and have they delivered blue chip returns?
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