1. People invest in blue chip stocks because of a number of reasons and same are as enumerated in the succeeding paras. However point to note is that bluechip stocks investment has its pros and cons and thus one investing blindly must see both sides of the coins before jumping the gun.

Pros
(a) It is no doubt that bluechip stocks are well-established companies with stable earnings and no extensive liabilities.
(b) Bluechip stocks are well-managed and have consistently performed across business cycles.
(c) Bluechip shares have the resources to not only weather the downturns and disturbances, but also emerge stronger from these down trends.
(d) If one invest in these multibagger shares than one can be sure of the long-term prospects for blue-chips.
(e) Thus one can be sure of returns through investment in these blue chip stocks by virtue of dividends and steady price rise.

Cons
Bluechip multibagger shares are also not immune to change and can undergo the hardships and fortunes may see down sing. The reasons may be as following:
(a) Company undergoes top management
(b) New initiatives may not yield returns like wrong move by Tata to acquire Jacquar Motors.
(c) Company's product demand sees a decline in the market
(d) Recession

2. Thus it makes sense to invest in bluechip stocks but one has to remember that change is only constant and be attuned to the changes in market with dynamic approach to switch the bluechip stock as and when required sensing the market direction.
Click Here to Get Free Stock Market Tips to Become Millionaire