Blue chip funds invest in the equity securities of large-cap firms. The top 100 companies by market cap are where large-cap corporations are determined, according to SEBI. These are the firms where large-cap funds must allocate at least 80% of their corpus, according to the SEBI regulation. As they invest in reputable companies with a successful track record, blue chip funds are renowned for their steadiness in the face of unpredictable stock markets. To invest in a mutual fund, you should look at its performance over the long run. In addition, you should choose Blue Chip funds that have surpassed their competitors and benchmark performance over time, if you are ready to accept the risk involved. However, the following list of two 5-star rated Blue Chip mutual funds has failed to beat its benchmark performance over the previous five years.