Blue chip stocks are the old faithfuls of the investing world. They don't offer the meteoric growth of a hot startup, but they give your portfolio steady returns over periods of time measured in decades. They are large-cap stocks and among the top 100 companies listed on the stock exchange, by their market capitalisation.

Blue chip stocks are shares of well-recognised companies with a long history of sound financial performance. These stocks are known to have capabilities to endure tough market conditions and give high returns in good market conditions. These stocks can be pricey because they have a good reputation and are often market leaders.