What is Blue Chip Shares?? n Why to choose such Stocks to Invest in??

      A blue chip stock is one that is well-established, financially sound, and historically secure. Blue chip companies are those that have a history of posting earnings and paying dividends, all while continuing to increase profits. While there will always be some fluctuation in markets, and all companies go though occasional downturns, blue chip companies are known for their strong executive management teams that make intelligent growth decisions, and for their high-quality products and services. Blue chip stocks, which are also known as large cap stocks, tend to rise and fall in conjunction with the stock market in general.

      

     Examples of blue chip stocks in Global Market include Coca-Cola, Disney, Intel, IBM etc. and in Nepalese market it may include Standard Chartered Bank Nepal, Uniliver Nepal Ltd, Nabil Bank Ltd, etc. Because the return on blue chip stocks is close to a sure thing, the stocks tend to be very expensive and have a low dividend yield. These drawbacks are more than offset by the earnings and dividends paid. Most blue chip stocks are offered by companies that have been around for decades, or even longer, but new companies can break into the blue chip ranks if analysts expect the company to last.

    Anyone who can afford to buy into a blue-chip company can become a shareholder to experienced share market investors in Nepal. However, these shares don’t come cheap. Private investors can expect to pay from Rs 500 to Rs 5000 a share. Often, as well, you are required to buy a minimum number of shares to get your foot in the door n i,e, minimum 10 units in NEPES. 

                       Good luck n Happy Investment….. Cheerrrssssss!!