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What is Blue Chip Stocks | Best Blue Chip Companies | Advantages of Blue Chip Stock | How To Find Blue Chip Stocks

What is a Blue Chip Share?

If you have interest in the stock market, then you must have heard the name of Blue Chip Share and Blue Chip Company many times, today we will talk about what is Blue Chip Share and Blue Chip Company?

    Blue Chip Shares

    In the stock market, the shares of a Blue Chip company are called Blue Chip Shares, there are some special things about a company with blue chip shares.

    • The market cap of the company is very large.
    • The company often gives regular DIVIDEND.
    • The sector the company belongs to is the largest company in that sector.
    • The company's work history and marketing goodwill is very good.

    Blue Chip Stock

    Blue Chip Stocks in Detail

    Those associated with the stock market will be well aware of the term blue chip. An org - fay fetch (Blue Chip Shares) is a large-cap, financially strong, and well-established company stock. Blue-chip stocks are a company with large market capitalization, generally market leaders prefer to invest in blue chip shares. 

    The term "blue chip share" comes from the well-known card game, poker, where the chip color of the highest and most valuable game is blue. Blue Chip Shares is believed to be the most valuable blue color chip name in the poker game. In the US, high quality stocks also came to be known as blue-chip shares, since then good credit, and stocks of high-quality companies came to be known as (Blue Chip Share).


    Blue Chip Company

    Blue Chip Company

    First of all let's talk about blue chip, actually the word blue chip was used in a game called poker in America, in this game named poker, blue chip coins were the most valuable,


    Gradually, in the stock market, this Blue Chip word was used for those companies in the stock market, the company which was the most trusted,


    Today, by Blue Chip Company, we mean those companies, which are mid-cap or mostly large-cap companies according to the market cap, and this company is the top company of its own industries, as well as earning regular profits in these companies. also have the capability of, and they have a very good name in the market from the point of view of a reliable company,


    It should also be noted that there is no such fixed method to find out the blue CHIP company,


    The company which is BLUE CHIP today, it is not necessary that it will remain BLUE CHIP in the future also, because due to the uncertainty in the stock market and business, the market cap of the company keeps on increasing or decreasing.

    Best Blue Chip Stocks in India

    Below are examples of blue chip companies. Whose stock has given good returns in the long run. Given below is a list of 10 blue chip stocks that are performing well in the stock market:

    1. Indian Tobacco Company (ITC) Limited

    2. Oil and Natural Gas Corporation (ONGC)

    3. Infosys

    4. Tata Consultancy Services (TCS)

    5. Hindustan Unilever Limited (HUL)

    6. Housing Development Finance Corporation (HDFC)

    7. Reliance Industries

    8. State Bank of India (SBI)

    9. Sun Pharmaceuticals Industries Limited

    10. Eicher Motors


    Advantage of blueChip Company/Stocks :

    (1). It offers higher returns that are paid quarterly.
    (2). Stable and regular dividends
    (3). Facilitates corpus building.
    (4). Facilitates portfolio diversification.
    (5). Cushions the impact of the recession, inflation and economic stagnation.

    Facts of Blue Chip Shares

    Blue Chip Stock

    Investing in blue chip shares is considered to be the best and safest investment, some other facts about blue chip shares are as follows :

    • Investing in BLUE CHIP SHARE in the stock market is considered to be the best investment compared to investing in other stocks.
    • Investing in BLUE CHIP SHARE is considered a safer investment in terms of capital loss than any other stock.
    • All the big investors of the stock market MUTUAL FUNDS HOUSES and FOREIGN INVESTOR INSTITUTION are mostly invested in the shares of BLUE CHIP COMPANY.
    • A general investor is always advised to invest in Blue CHIP company.
    • Blue chip shares usually have high liquidity and low volatility, and there is always a good chance of getting dividend.


    Final Thoughts

    After understanding about blue chip share and blue chip company now two questions come,


    First of all, whether we should also invest in blue chip company or not, then the answer is, absolutely we should invest, and a part of our portfolio must be SHARE of BLUE CHIP COMPANY,


    The second question is whether it is absolutely safe to invest in blue chip shares - so the answer is, absolutely not.


    As I already told, the company which is blue chip today is not always blue chip, over time there is a difference in the market cap of the company and the future growth of the company, and big company also goes through financial crisis.


    Therefore, if you invest in a blue chip company or any company, then you should keep reviewing your investment from time to time.


    We hope you like this article very much. Feedback is kindly invited, please comment. 


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