When there is a stock of financially sound, seasoned and reputed company which is usually high priced along with added goodwill, it is called ‘Blue Chip Stock’
These stocks are usually high performers and risk bearable in critical market conditions. These companies have high goodwill among their contemporaries and they are trend setters and leaders as far as their product or market is concerned. They are known to provide high returns to investors and often, these stocks are costly for the same reason. We will not go to the history of this word namely ‘Blue Chip’.
Why to invest in blue ‘chips stocks’ when there are many promising new companies are there?
If , as an investor, one thinks from the long term point of view then it may create some sort of confusion whether you should invest in these high priced stocks or not. On the other side you can easily buy some of the promising new offerings, that too high in volume.
Well, let us try to make it simple here to make it light weight for you to decide whether to buy it or not. But if you are the one who is looking for stable returns on critical market conditions as well then, Blue chip stocks are for you. These stocks may cost you several more bucks, but at the same time, they also offer the high end returns.
These companies are there for long time now with very long term vision. Their expansion plans and risk bearing capacities are also on the level zenith. It is not wrong to say that investing in blue chip companies would never become old fashioned in the world.
Because, investors usually make their portfolio with different motives but the major motive would be to gain high returns. Hence, if you are the one who wants to diversify the risks and always eager to earn high returns, when market is on bull side. Investors with long term financial goals are often interested in buying such stocks. From the past data (Approx.) 18% returns on investment can be seen.
Major Advantages to Invest in Blue Chip Stocks
You always have choice to choose where you want to put your money. Long term financial goals can be achieved by investing in the blue chip companies. Always try to justify your own financial needs and take decision based on risk bearing capacity. Kindly have a look into the tabular data which indicates some of best performing blue chip stocks in India.
|Table Data Source : Sam Co(TWH)|
|Company||CMP (Dec,2021)||Industry||NSE Symbol||BSE Code||Rating|
|1||Reliance Industries Ltd.||2362.6||Crude Oil||RELIANCE||500325||0.5|
|2||Tata Consultancy Services Ltd.||3536.4||Information Technology||TCS||532540||4.5|
|3||Hindustan Unilever Ltd.||2306.5||FMCG||HINDUNILVR||500696||5|
|4||Infosys Ltd.||1695.3||Information Technology||INFY||500209||4.5|
|5||Housing Development Finance Corporation Ltd.||2813.1||Finance – Housing||HDFC||500010||4.5|
|6||Bharti Airtel Ltd.||697.6||Telecom||BHARTIARTL||532454||0.5|
|8||Asian Paints Ltd.||3038.3||Chemical – Paints||ASIANPAINT||500820||3|
|9||Nestle India Ltd.||19016.5||FMCG||NESTLEIND||500790||5|
|10||HCL Technologies Ltd.||1136.6||Information Technology||HCLTECH||532281||4|
|11||Maruti Suzuki India Ltd.||7042.9||Automobiles & Ancillaries||MARUTI||532500||2|
|12||Larsen & Toubro Ltd.||1782.7||Infrastructure||LT||500510||0.5|
|13||Titan Company Ltd.||2325.3||Diamond & Jewellery||TITAN||500114||0.5|
|14||Britannia Industries Ltd.||3496.2||FMCG||BRITANNIA||500825||4|
|15||Bajaj Auto Ltd.||3249.8||Automobiles & Ancillaries||BAJAJ-AUTO||532977||4.5|
|16||Eicher Motors Ltd.||2444.1||Automobiles & Ancillaries||EICHERMOT||505200||4|
|17||Dr. Reddys Laboratories Ltd.||4483.2||Pharmaceuticals & Drugs||DRREDDY||500124||1|
|18||Avenue Supermarts Ltd.||4593.5||Retailing||DMART||540376||3|
|19||Pidilite Industries Ltd.||2201.6||Chemical||PIDILITIND||500331||3|
|20||HDFC Bank Ltd.||1503.8||Bank – Private||HDFCBANK||500180||5|