Everything About Blue Chip Stocks

If you've been looking for a secure and rewarding investment, you must have come across blue chip stocks. The term "blue chip" comes from poker, a card game where blue tokens are of the highest value on the casino table and among the casino chips.

In this article, we'll explore what blue chip stocks are, their characteristics and assess if they make a worthwhile investment. 

What are blue chip stocks?

Blue chip stocks are widely acknowledged as the most valuable stocks in the market.

These stocks are issued by large, well-established companies with excellent financial record. They are listed among the best companies in their respective sector. Moreover, blue chip stocks usually have a proven track record of yielding consistent dividends to their investors over the long run. 

Besides that, they're recognised for their resilience in tough market conditions and ability to generate significant returns when the market is favourable. They’re even listed on market indices such as BSE Sensex or Nifty 50.

Characteristics of blue chip stocks

Here are four essential features of blue chip stock.

#1. Stable growth

Blue-chip companies are large companies that have reached their maximum growth potential. This influences the blue chip share, which undergoes slow but steady growth over time.

#2. Risk factor

Since blue-chip stocks are issued by well-established companies with strong financial positions, they carry a lower level of risk. Investors holding blue chip stocks can expect to earn a steady dividend without major fluctuations.

#3. High returns

Investing in blue chip stocks often guarantees high returns. This is because these companies are well-established and can withstand dynamic market conditions.

#4. Liquidity and volatility

Blue-chip stocks are highly liquid, meaning there is a large pool of investors willing to buy and sell these stocks on a daily basis. Moreover, blue-chip companies tend to be less volatile than other stocks due to their financial strength and consistent performance.

List of blue chip stocks in India

Blue chip companies are typically renowned for their products or services, establishing themselves as household names. Here's a blue chips stock list that you must add to your watchlist.

#1. Reliance Industries Ltd.

#2. Infosys

#3. ITC

#4. TATA Consultancy Services Ltd.

#5. Sun Pharma

#6. Asian Paints Ltd.

#7. Bharat Petroleum Ltd

#8. Havells India Ltd

#9. HCL Technologies Ltd.

#10. Nestle India

Before investing in a stock, ascertain the blue chip stock's 52-week low value. This shows the stock's lowest price in the past year, giving you insight into its long-term performance. With this information, you can make an informed decision about whether to invest in the stock.

Should you make a blue chip investment?

Blue chip stocks can be a good investment for long-term investors looking for a relatively safe and stable investment with growth potential. Since blue chip companies have a long history of profitability and financial stability, they're less likely to go bankrupt or experience a major decline in their stock price.

And if you’re considering investing in blue chip companies in India, your first step is to find a reliable platform. And you find that in Tata Capital’s Moneyfy App. Now compare stocks based on risk appetite, investment goals and more, right from the comfort of your home. Download now!