Is there a mutual fund that specifically includes blue chip stocks?

I would like to invest in stocks that provide diversification, since I am a beginner. I would like to start off with at least $5,000 for my initial investment. I want to see if investing in few blue chip individual stocks or mutual funds is considered a great choice.

Investing, Mutual Funds
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February 2016
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First of all, I do not like the term "Blue Chip" stock. The implication is that somehow that stock is safer, or a better investment, than other stocks. At one time, maybe this was true, but in today's rapidly changing economy, no single company can offer the kind of "widows and orphans" safety that people used to associate with stocks like IBM (a shadow of its former self), General Motors (declared bankruptcy), and the like. With that out of the way, I would recommend that investors who want to invest in large US companies may want to purchase an S&P 500 index fund. By owning 500 of the largest companies in the US, you reduce the risk that you choose a stinker, while capturing all of the returns of the market. Keep in mind that you should not invest in stocks at all unless a) you can tolerate fluctuations in your investment value and b) you don't need the money for the next 5 years at least.

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