Definition
Blue-chip stocks are shares of large, well-established, and financially strong companies. These companies have a good reputation, stable earnings, and a history of consistent performance over time. They are usually considered safe and reliable investments.
Example
Companies such as Reliance Industries, TCS, and Infosys are often called blue-chip stocks in India. These companies are well-known and, for most, have been performing consistently for many years.
Caution
Blue-chip stocks are generally stable, but they may not give very high returns compared to smaller or riskier stocks. Their prices can still go down during market downturns, hence investors should not assume they are completely risk-free.