Remember that basic rule that there is nothing like assured returns in the stock markets. Even the best of stocks with the best pedigree cannot assure you any kind of returns. Blue chips, as the name suggests are the stocks that have a pedigree and a performance track record built over a fairly long period of time. Normally, you find blue chips across sectors and these are companies that show fairly high levels of growth and margin performance. For example, within the auto space, companies like Maruti, Tata Motors, M&M, Bajaj Auto and HMCL will classify as blue chip stocks. Similarly, in the oil sector, stocks like Reliance Industries, ONGC, IOC and BPCL will classify as blue chips. Of course, the list can go on!

There are times when even the blue chips go into long downtrends. We saw that in stocks like Reliance Industries, Larsen & Toubro, and HPCL etc. The only good thing about such stocks is that you can reasonably hope that such stocks could eventually bounce back. That means, in case you bought these stocks and the prices have come down then you can buy more of the stock at lower levels and therefore you can gain from the same.