HDFC Life BlueChip Fund

What is HDFC Life Bluechip Fund?

HDFC Life Bluechip Fund is an equity-oriented investment fund that primarily invests in shares of well-established, financially strong companies known as blue chip companies. These companies have a credible track record of stable financial performance, including steady dividends, profitability, and market leadership. The fund aims to provide investors with stable and consistent long-term returns by leveraging the growth and stability of these blue chip stocks. The fund was launched on January 5, 2010, and is managed by Nishit Dholakia, who currently oversees the portfolio and investment strategy of the HDFC Life Blue Chip Fund.

Fund Objective:

• The primary objective of the BlueChip Fund is to provide medium to long-term capital appreciation.

• It aims to achieve this by investing in a portfolio predominantly consisting of large-cap companies that have the potential to perform consistently across various economic and market cycles.

• The fund has a mandate to invest at least 80% of its Assets Under Management (AUM) in companies with a market capitalization greater than the company with the least weight in the BSE100 index.

• The fund retains the flexibility to invest up to 20% in money market instruments or cash.

Highlights of HDFC Life Blue Chip Fund

The table below highlights the HDFC Life Blue Chip Fund investment facts:

HDFC Blue Chip Fund Performance vs Benchmark Performance

Portfolio for HDFC Blue Chip Fund

HDFC Life ULIP Plans Offering the HDFC Blue Chip Fund

This fund is available as an investment option within various HDFC Life Unit Linked Insurance Plans (ULIPs), combining insurance protection with market-linked investment opportunities. Some of the key ULIP plans offering the HDFC Life Blue Chip Fund include:

• HDFC Life Click 2 Invest Plan: An online ULIP with a minimal charge structure, offering flexible premium payment options (single pay, limited pay, or regular pay) and policy terms ranging from 5 to 40 years. It provides 16 fund options including the Blue Chip Fund, allowing investors to choose based on their risk appetite and financial goals. The plan offers life cover and market-linked returns with tax benefits under Sections 80C and 10(10D).

• HDFC Life ProGrowth Flexi Plan: A ULIP plan designed for flexible premium payments and investment options, allowing policyholders to switch funds and manage their portfolio actively. It offers a range of fund options including the Blue Chip Fund, suitable for investors seeking long-term wealth creation with insurance cover.

• HDFC Life Pro Growth Maximiser Plan: This plan focuses on maximizing growth through diversified equity investments, including large-cap stocks via the Blue Chip Fund. It offers comprehensive insurance protection along with opportunities for capital appreciation.

• HDFC Life Pro Growth Plus Plan: One of the popular ULIP plans where the Blue Chip Fund is a key investment option. It provides a blend of growth and protection with flexible premium payment terms and policy tenure, catering to investors aiming for stable long-term returns from large-cap equities.

• HDFC Life Young Star Super Premium: A ULIP plan tailored for children’s future financial needs, offering investment in large-cap funds like the Bluechip Fund to build a strong equity portfolio over a long horizon, combined with life insurance benefits.

• HDFC SL Crest and HDFC SL Pro Growth Super II: These are other ULIP offerings from HDFC Life that include the Blue Chip Fund among their investment options, providing policyholders with diversified exposure to large-cap equities alongside insurance coverage.

Why Choose HDFC Blue Chip Fund?

• Combination of Insurance and Investment: These plans offer life insurance protection along with the potential for wealth creation through equity investments in blue chip companies.

• Flexible Premium and Policy Terms: Options to choose premium payment frequency, policy tenure, and fund allocation according to individual needs.

• Wide Fund Choice: Access to multiple fund options including the Bluechip Fund, enabling investors to tailor their portfolio risk and returns.

• Tax Benefits: Premiums paid under these ULIP plans are eligible for tax deductions under Section 80C, and maturity proceeds may be exempt under Section 10(10D), subject to prevailing tax laws.

• Fund Switching and Partial Withdrawals: Policyholders can switch between funds and make partial withdrawals as per plan terms, offering liquidity and portfolio rebalancing flexibility.

Wrapping it Up

HDFC Life Bluechip Fund stands out as a reliable and disciplined investment option for investors seeking exposure to India’s top large-cap companies with a proven track record of stability and growth. Available through various HDFC Life ULIP plans, the fund offers the added advantage of combining insurance protection with market-linked investment opportunities, along with tax benefits under Sections 80C and 10(10D). Overall, the HDFC Bluechip Fund is well-suited for investors who want to build wealth steadily through quality equity investments while enjoying the security of life insurance coverage.