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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May 2017
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I congratulate you on your plans to begin investing and suspect that you have a long horizon for doing so.  With that said, I agree that investing in stocks in what you should be doing.  But when investing in stocks unless you are prepared to do so with a diversification of at least a dozen and probably twice that many, I don't think this is the best possible choice.  As a beginning step, that's not practical.  Even so, let me answer your question first and then make a suggestion

Yes, there are a number of funds that specifically include blue chip stocks.  They include Fidelity Blue Chip Growth Fund, T. Rowe Price Blue Chip Growth Fund, Vanguard U.S. Growth Fund, as well as exchange-traded funds such as iShares Russell 1000 Growth and Vanguard Russell 1000 Growth.  These are all focused on the U.S. market.  What I must point out is that the U.S. market is rather richly valued at the moment and is, to some extent, trading higher in expectation of the possibility of reduced taxes.  That change may be delayed or may not happen.

Although the U.S. market has had an extended rebound from the depths of the 2008-9 plunge, international markets have recovered far more slowly and represent better value.  For that reason and since you would be in the early phases of investing, I think you would be far better served by looking at VT, Vanguard's Total World exchange-traded fund.  With this one holding, you would have broad exposure to stocks in the U.S. and around the world.  What's more, you can add to it over time and later on, if you wish, buy some stocks or other funds as well.  At this point, however, broad diversification would give you a good starting point and cost-effectiveness.

Good luck!

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