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A blue chip stock is a stock which is known for its reputation, reliability, its ability to make investor earn huge profits and quality. A blue chip stock is considered to be safe and they provide a financial assurance to an investor that it will not lead him into any of the monetary crisis. Blue chip stocks are the firm leader of the stocks market. E.g. of blue chip stocks can be coca cola, Tata steal, state bank of India, Tata consultancy services, ICICI bank, reliance industries, Bharti Airtel etc.

An investor should be very careful while investing in blue chip stocks, though these stocks fixed return on investment but an investor should know all the information of blue chip stocks thoroughly and should analyze that information by making a note of its future, present and past performances. We all know that stock market is very unpredictable and we do not know that what is going to happen in future. It is possible that a particular stock can follow history and there is an equal possibility of that particular stock to set a new history by following some other trend. As blue chip stocks provide fixed return of money on invested amount by investor so they are known for profit making. These blue chip companies are well established and they show positive records of high earnings every year they grow.

These blue chip companies also show that they have paid dividends to their investors when the market is suffering from crest and trough movement of monetary crisis. As we all know that blue chip stocks are well established they have strong financial stand in stock market and hold a dignified position. Blue chip stocks generally perform well so investors feel comfortable in investing in these stocks as they have mental assurance of getting fixed returns on their investment. An investor do not have to particularly choose a blue chip stock for getting fixed returns rather to be on more safer side he can invest in mutual fund which is only comprised of blue chip stocks. It is very easy for an investor to find out any information regarding the blue chip stocks as the information is readily and easily available for such kind of stocks on internet. Even a new investor wont have any difficulty in analyzing information regarding the blue chip stocks. Though these blue chip stocks make their investor happy by giving fixed returns but in turn investors have to pay a good price for the quality of the blue chip stock. Stock prices of blue chip stocks are generally found to be on higher sides in comparison to ordinary stocks.

Though these blue chip stocks are safer to invest but due to unpredictable nature of stock market blue chip stock can also its true value by taking investor into financial crisis. So an investor has to be very careful in bifurcating his investments into different blue chip stocks. The power given by brand names and high financial positions in stock market always give a competitive advantage to blue chip stocks. Blue chip stocks provide their customers with rates of return or longer periods. Blue chip stocks provide their investor in achieving maximum monetary benefits by helping them to achieve their financial goals through the right kind of investment.

These blue chip stocks have wide range of areas of the product followed by large set of customers. These stocks show consistent performance throughout the year by making their companies to earn fixed money. Blue chip stocks have low liabilities and always try to make high credits so that an investor can get a fixed return on his investment. Investors earn fixed revenue by investing in blue chip stocks which in turn helps them in getting a fixed profit from that stock without any failure. An investor can lower his financial risk by investing in blue chip stocks.

In order to conclude this topic we can say that an investor has the best opportunity to invest in blue chip stocks when the markets are giving these stocks on steep discounts. In an investors portfolio if he is having a blue chip stock that will be considered as a golden crown above all the existing stocks.