Blue chip funds invest in equity securities of large-cap companies. According to SEBI, the top 100 companies by market capitalization are where large-cap corporations are defined. These are companies to which large-cap funds must allocate at least 80% of their companies, according to SEBI regulations. As they invest in reputable companies with a track record of success, blue chip funds are renowned for their stability in the face of unpredictable stock markets. To invest in a mutual fund, you should consider its performance over the long term. Additionally, you should choose Blue Chip funds that have outperformed their competitors and benchmarked performance over time, if you’re willing to accept the risks involved. However, the following list of two 5-star rated Blue Chip mutual funds has not been able to beat its benchmark performance over the previous 5 years.