Blue chip funds and index funds both fall under the category of Mutual Fund but have key differences:Blue Chip Fund:These funds invest in large, established companies with a history of stable performance.They focus on industry leaders, considered safer investments.These funds aim for growth and steady income in the long term.It is managed by a fund manager who decides which are the best investment options to buy and sell based on research.Index Fund:These funds aim not only to beat the benchmark performances but also outperform.Known for low fees and expenses due to less required research.Offer diversified exposure to a broad market or specific sector without individual stock selection.