Top 5 Blue Chip Companies For 2014

Below is a verbatim transcript of the interview. Also watch the video.

Q: I can invest Rs 5,000 per month and I want Rs 20 lakh in 10 years. How should I allocate that money?

A: Lal Babu, because your objective here is to make a corpus, you have set a target of Rs 20 lakh, within 10 years�time limit. If you plan to invest Rs 5,000 per month, your focus should be on asset classes where the real rate of return is more than inflation. Only then will be get good returns. So you can invest in equity funds. There are two funds �the HDFC Equity Fund , which is a multi-cap fund and has a very long established track record, you can definitely consider this. Second, would be the ICICI Focus Blue Chip Fund . As the name suggests, it invests in blue-chip companies.

So,  every month you can put in money in those two fund. When you are investing through SIP, make sure that the dates for both these funds are different, to enable you to get benefits out of the volatility in the market. If we are considering an annualised return of 12% and if you are continuing your investment process for 10 years, you can get a corpus of upto Rs 11 lakh, which would be a lot less than your target.

10 Best Oil Stocks To Buy Right Now: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By Douglas A. McIntyre]

  Some traditional brand powerhouses have lost ground in the Top 100 since 2009. These include BMW, FedEx Corp. (NYSE: FDX) and Colgate-Palmolive Co. (NYSE: CL).

• [By Dan Caplinger]

  Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL  ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

• [By Dan Caplinger]

  One concern, though, is how the company handled news of Venezuela's currency devaluation. Clorox (NYSE: CLX  ) and Colgate-Palmolive (NYSE: CL  ) also felt the pinch, with Clorox taking about a $0.05 to $0.10 per-share earnings hit and Colgate losing about $0.50 per share. But they also addressed the potential devaluation more proactively than P&G did. Clorox actually�anticipated�the devaluation in its February earnings report, projecting the potential hit if a devaluation took place. Colgate didn't provide specific guidance in advance but clearly saw it as an issue, delivering on a promise to give prompt guidance revisions after the devaluation occurred.

Top 5 Blue Chip Companies For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By CNBC]

  Mark Wilson/Getty ImagesFederal Reserve Chairman Ben Bernanke "Taper talk" could pretty much be dead until next year. Thanks to the dysfunction in Washington, many Fed watchers now see the first taper in the Federal Reserve's bond buying coming sometime later than expected -- certainly not before December but probably in the first quarter. Wall Street had been geared up for the start of a pullback from the easing program sometime this quarter, but a more sluggish economy and fiscal uncertainty make that less likely. "One thing we know for sure, as much as we know anything, is that short-term interest rates are going to stay low for as far as the eye can see," DoubleLine CEO and chief investment officer Jeff Grundlach said on "Squawk on the Street." "Quantitative easing is not even going away. It seems with this budget wrangling, it's going to keep going up." "It means the credit market is really a safer place than it's been for the last few months," he said. Since word of a compromise debt deal came Wednesday, bond yields have fallen and the dollar has tumbled, as traders worried the partisan battling would resume around the next set of deadlines for the budget in January and debt ceiling in February. The 10-year Treasury yield dipped to 2.6 percent from its Wednesday morning high of 2.76 percent, and the dollar index lost a full percent Thursday, trading at a nine-month low of 79.68. The S&P 500 Thursday, after trading lower early in the day, broke through to a new high in the afternoon in a burst of buying. The S&P 500 (^GSPC) closed up 11 at 1,733, topping its Sept. 19 high. The Dow (^DJI), however, finished down 2 at 15,371, dragged down by losses in IBM (IBM). "You don't have to worry about the government anymore. A couple of speed bumps are out of the way. There's no way they're going to taper this month and the odds of them tapering in December are low," said Dan Greenhaus, chief global strategist at BTIG. Greenhaus said the stock market als

• [By Alex Planes]

  Key to 3.0's success was Microsoft's ability to convince many early PC-makers to pre-install the operating system on machines before they reached consumers. Although IBM (NYSE: IBM  ) and Compaq (now part of Hewlett-Packard) refused to commit to pre-installs -- IBM was still trying to push its 3-year-old OS/2 (an early Windows competitor), and Compaq's general policy opposed all pre-installs at the time -- Microsoft still managed to assemble a lineup of 30 computer makers, virtually none of which still make computers today, to include Windows 3.0 on machines out of the box. The $150 operating system sold 100,000 copies in its first two weeks on the market, and 4 million PCs were running Windows 3.0 by the end of its first year on the market.

• [By Anders Bylund]

  Maybe Microsoft would be better off doubling down on the enterprise-class software portfolio instead, leaving others to battle over consumer gadgets like tablets and smartphones. Spin-off or sell the successful Xbox operation to give it the best possible shot at rewarding investors, and let the core of Microsoft go head-to-head with IBM (NYSE: IBM  ) in the business-class sector instead.

• [By E.S. Browning]

  Investors face two problems: The first is earnings. Of the 52 companies in the S&P 500 index that have reported fourth-quarter results, 52% beat expectations according to S&P Capital IQ, below the average 67% of the past four quarters. Moreover, revenue gains have been weak. Earnings season has just begun and money managers will be watching coming reports closely, including from International Business Machines Corp.(IBM), Verizon Communications Inc.(VZ) and McDonald�� Corp. this week.

Top 5 Blue Chip Companies For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Jim Royal]

  Let's take McDonald's (NYSE: MCD  ) as an example. In the four quarters ending in December, the restaurateur generated $6.97 billion in operating cash flow. It invested about $3.05 billion in property, plant, and equipment. To calculate free cash flow, subtract McDonald's investment from its operating cash flow. That leaves us with $3.92 billion in free cash flow, which the company can save for future expenditures or distribute to shareholders.

• [By Sue Chang]

  McDonald�� (MCD) �is likely to post earnings of $1.24 a share in the first quarter. ��e rate the shares of McDonald�� Corp. neutral. This rating largely reflects our concerns about domestic same-store sales trends and unit-level operations, including menu complexity and what appears to be slowing average service times,��said Mark Kalinowski at Janney Capital Markets.

• [By Monica Gerson]

  (c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular SLIDESHOW: iWatch Supplier, iPad Event And More From The Third Week Of October Earnings Expectations For The Week Of October 21: The Crunch Is On Netflix Earnings Preview: Eyes On Subscriber Growth McDonald's Earnings Preview: Was The Menu Tinkering Worth It? (MCD) New Startup GroupFlix Is Netflix A La Carte Barron's Recap: Return Of The Bulls Related Articles (HAL + HAS) Stocks To Watch For October 21, 2013 Earnings Expectations For The Week Of October 21: The Crunch Is On Benzinga's Top Pre-Market Gainers Toy Industry Winds Up Ahead of Holiday Shopping Season Which Companies Benefit From The Holiday Season Stock Price Jump? What to Co

Top 5 Blue Chip Companies For 2014: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Michael Flannelly]

  Following Apple Inc.’s (AAPL) iPhone event on Tuesday, where the Cupertino, California-based company unveiled its iPhone 5S, iPhone 5C, and other products, a number of analyst firms weighed in with mixed commentary on Wednesday.

  For the most part, it seemed as though the various analysts were underwhelmed with Apple’s new products, especially the pricing on the supposedly cheap iPhone 5C. As such, Apple shares are sliding in pre-market trading. Here is some of the commentary from analysts on Wednesday:

  Negative Commentary

  Susquehanna
  Chris Caso, an analyst at Susquehanna, reiterated his “Neutral” rating on AAPL, as he believes that this year’s iPhone product cycle won’t be a significant positive catalyst for the stock. Caso sees shares of AAPL reaching $440, which suggests an 11% downside to the stock’s Tuesday closing price.

  “As usual, there were few surprises from AAPL’s well-previewed iPhone launch yesterday,” Caso commented. “We think the biggest surprise from an investment perspective is that the new iPhone 5C will be positioned as a midrange phone, and won�� provide much near-term help in addressing lower price points in emerging markets, as some had speculated. We do expect the addition of DoCoMo and China Mobile to represent TAM expansion, but not to represent the significant volume boost that would come from a lower-priced emerging market phone. We therefore maintain our view that this year�� iPhone product cycle isn’t a significant catalyst. We do, however, see a more significant catalyst next year, given our expectations for a larger-screen iPhone and as a new product cycle allows the iPhone 5C to be priced more aggressively at China Mobile.”

  Credit Suisse
  Analysts at Credit Suisse downgraded AAPL from “Outperform” to “Neutral” and see shares reaching $525. This price target suggests a 6% upside to the stock̵

• [By Joe Tenebruso]

  The Apple threat
  Android has the dominant share of the smartphone market, with some estimates placing it at more than 80%. Android is also steadily gaining share in the tablet space, with some research firms projecting its share to reach 65% of all tablets to be shipped in 2014. However, Apple (NASDAQ: AAPL  ) leads Google by a significant margin in the area that matters most of all: profit share. But Google is improving its monetization of its Android ecosystem; revenue in Google's digital apps and content business surged 85% to $1.2 billion in the third quarter. If Google can maintain its unit share lead in smartphones and claim the lead in tablets, its share of these industries' profits should continue to grow.

• [By Geoff Gannon] >Starbucks (SBUX) and Exxon Mobil (XOM) can only grow up in very special environments." Can you elaborate on that statement? I don't understand what you mean by "special environments."

  By special environments I meant that the companies grew on a societal wave that allowed them to become so huge. They ended up serving enormous markets. They didn�� really grow these markets purely by force of will. In some cases, like Apple, they contributed a lot to the growth of these markets. But it�� not like they invented these markets. And it�� not like these markets needed these particular companies to grow the market. The markets for oil and coffee would be very big with or without Exxon and Starbucks. Those companies grew to be really big companies in really big markets. So, part of it is their own success story ��that�� true. But equal success in a smaller market would never have led them to become so big. It�� not possible for most companies to achieve that kind of growth, because most companies are limited by the carrying capacity of their market.

  Essentially, a company is limited by a few factors:

  路 Carrying Capacity

  路 Time

  路 Assets

  路 Will

  A business is: a thing that exercises its will over assets through time.

  So, the size of a company is determined by its assets and its ability to exercise its will over those assets. Will is exercised by the company�� agents ��its employees. At some companies, the exercise of will is mostly concentrated in one person. At other companies, the exercise of will is mostly dispersed over thousands of employees.

  The growth of a bank is constrained by its ability to exercise its will over its assets. Unless a branch can be opened with the right people in place, the chance of reliable growth is poor.

  Berkshire Hathaway (BRK.A)(BRK.B)�� growth was also constrained by its inability to exercise its will. Berkshire tried to establish insurance operations that w

• [By Douglas A. McIntyre]

  The new Apple Inc. (NASDAQ: AAPL) iPhone or iPhones will be released early next month, according to hundreds of press accounts. The range of price points among the models will be substantial, which could make it hard, for the first time, for consumers to pick a phone and be happy with the choice.