What kind of fund is T. Rowe Price Blue Chip Growth?
About TRBCX
Overall Rating
Morningstar has awarded this fund 3 stars based on its risk-adjusted performance compared to the 1111 funds within its Morningstar Category.
Fidelity® Blue Chip Growth Fund is a domestic equity growth strategy with a large-cap bias. Our investment approach focuses on companies we believe have above-average earnings growth potential with sustainable business models, for which the market has mispriced the rate and/or durability of growth.
A blue chip fund is an equity scheme that offers its investors a portfolio of stocks that generate solid and stable yields for a long time. These stocks are high-market companies, meaning the risk factor is relatively low. One can also consider blue chip funds as a sound financial scheme with decent returns.
Blue Chip Growth Fund (TRBCX) | T.
| ETF | Assets Under Management | Annual Fee |
|---|---|---|
| SPDR S&P 500 ETF (NYSEMKT:SPY) | $527 billion | 0.0945% |
| SPDR Dow Jones Industrial Average ETF (NASDAQ:DIA) | $33.8 billion | 0.16% |
| Invesco QQQ Trust (NASDAQ:QQQ) | $257 billion | 0.2% |
| Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) | $91.4 billion | 0.06% |
Lower Risk Compared to Other Mutual Funds: Blue Chip Mutual Funds are often considered lower in risk compared to other types of mutual funds. Such as small-cap or sector-specific funds. Their investments in large, well-established companies can mitigate the potential for extreme market volatility.
A blue-chip index seeks to track the performance of financially stable, well-established companies that provide investors with consistent returns. A mutual fund consists of a portfolio of stocks, bonds, or other securities and is overseen by a professional fund manager.
Blue-chip stocks often have strong balance sheets, consistent cash flows, established business strategies, and a track record of rising dividends. As a result of their track records and performance histories, investors generally consider blue-chip stocks to be among the most secure stock investments.
These stocks are often seen as a core component of a well-diversified investment portfolio. Blue chip stocks can provide stability and consistency to a portfolio while offering potential long-term growth. They can be an attractive and rewarding option with careful research and a well-considered investment strategy.
Is blue chip a mutual fund?
Popular brands with excellent sales and yields fall under the blue-chip fund. They offer reliability and safety to the investors. A Blue-chip mutual fund is also known as a growth fund.
The fund name 'Bluechip fund' and 'large-cap fund' are used interchangeably because they both refer to those equity mutual funds that invest in stocks of large-cap companies listed on the stock exchanges.
The main difference between Blue Chip and Large Cap is that Blue Chip refers to companies with a reputation for reliability and the ability to operate profitably in good and bad times, while Large Cap refers to companies with a large market capitalization.
Focus on companies with double-digit earnings and cash flow growth - emphasize sustainable growth, not momentum growth. Integrate fundamental research - seek high-quality earnings, strong free cash flow growth, and seasoned management teams with a demonstrated history of thoughtful capital allocation.
Overall Rating
Morningstar has awarded this fund 3 stars based on its risk-adjusted performance compared to the 1111 funds within its Morningstar Category.
Rowe Price Growth & Income Fund, Inc. (PRGIX)
In general, the average rate of return on blue-chip stocks is around 10%, which is similar to the indices that they are featured on. A good indicator of blue-chip status is if the company is listed on a renowned stock index.
| Ticker | Name | 5-year return (%) |
|---|---|---|
| FGRTX | Fidelity Mega Cap Stock | 16.52% |
| STSEX | BlackRock Exchange BlackRock | 16.27% |
| USBOX | Pear Tree Quality Ordinary | 16.13% |
| FGLGX | Fidelity Series Large Cap Stock | 16.08% |
- Stability. ...
- Reliable Investment Options. ...
- Included in Major Indices. ...
- Leader of Respective Sectors. ...
- Bargaining Power. ...
- Robust Financial Strength. ...
- Can Withstand Market Fluctuations. ...
- Consistent Track Record.
Equities and equity-based investments such as mutual funds, index funds and exchange-traded funds (ETFs) are risky, with prices that fluctuate on the open market each day.
Which funds are most risky?
- Cryptoassets (also known as cryptos) A form of unofficial digital asset based on distributed computer networks. ...
- Mini-bonds (sometimes called high interest return bonds) ...
- Land banking. ...
- Contracts for Difference (CFDs)
- Mirae Asset Midcap Fund. EQUITY Mid Cap. ...
- Kotak Emerging Equity Fund. EQUITY Mid Cap. ...
- PGIM India Midcap Opportunities Fund. EQUITY Mid Cap. ...
- Nippon India Small Cap Fund. ...
- Nippon India Growth Fund. ...
- Kotak Small Cap Fund. ...
- HDFC Small Cap Fund. ...
- Edelweiss Mid Cap Fund.
Some examples of blue chip stocks are Coca Cola, Apple, IBM, American Express, McDonalds, DuPont, and American Express.
Investors select "blue chip" stocks because they: Have a reputation for quality management and sometimes pay dividends. The phrase "don't put all your eggs in one basket" describes the following investment strategy? Diversification.
Cons of Blue chip stocks
Lower Growth Potential: Despite the fact that blue chip stocks often have solid profitability, their rate of growth is typically slower than that of other equities because of the markets they participate in.
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