SBI Magnum Children’s Benefit Fund – Check features, other details

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Updated: Sep 07, 2020 6:40 PM

SBI Magnum Children’s Benefit Fund is an investment plan that will invest in equity and equity-related instruments including equity ETFs, debt including debt ETFs and money market instruments, in REITS and in Gold ETFs.

mutual fund, Mutual Fund Investment, How to select right mutual fund investment, COVID-19 crisis, how to select right mutual fund, best mutual funds, fund ratings, crisil, wealth management, Covid-19 impact, buy defensive stocks, gold, smart ways to strategize asset allocation, Emergency Funds, Productive Assets, FD, mutual fund,This fund will be a 15-day offering starting from Tuesday, 8th September 2020, and will close on Tuesday, 22nd September 2020.

SBI Mutual Fund has launched SBI Magnum Children’s, Benefit Fund. It is an open-ended investment plan that will enable parents to invest in their child’s futures. This new investment plan is a part of the SBI Magnum Children’s Benefit Fund, which is a debt-oriented savings plan. This fund will be a 15-day offering starting from Tuesday, 8th September 2020, and will close on Tuesday, 22nd September 2020.

SBI Magnum Children’s Benefit Fund is an investment plan that will invest in equity and equity-related instruments including equity ETFs with a minimum of 65 per cent going up to 100 per cent, debt including debt ETFs and money market instruments up to a maximum of 35 per cent in REITS and invests up to 10 per cent and up to 20 per cent in Gold ETFs.

SBI says the SBI Magnum Children’s Benefit investment plan will be ideal for a child aged 1 year ideally going up to when the policyholder is 14 years old, thereby allowing long-term capital appreciation over the long-term. Additionally, there would be a lock-in period of up to 5 years or till the child attains the age of majority, whichever is earlier.

Vinay Tonse, MD, and CEO, SBI Mutual Fund said, “Funding education of their children is the top priority for any parent. Given the dual challenges of the rising cost of education and interest rates coming down significantly, there is a need to look beyond traditional investment options. SBI Magnum Children’s Benefit Fund – Investment Plan is an ideal fit given its construct of being well-diversified across asset-classes, be it equity, debt, or gold.”

Having an equity asset class as a long-term wealth-creator will help parents in having the right financial support to take care of their child’s future and the sooner they start the better it is, SBI Mutual Fund spokesperson added.

Experts say the SIP route works well for all long-term goals and in this fund particularly for young parents who can start planning early for their child’s dreams. Hence, starting a SIP and regularly doing a top-up of their SIP amount every year can make funding for children’s education easier for parents.

Navneet Munot, Chief Investment Officer, SBI Mutual Fund said, “The strategy is to create a fund portfolio with a combination of high conviction ideas with a long-term orientation within a robust risk management framework. The equity portion would be market capitalization agnostic, while the debt portion would be invested in high credit quality portfolio with a short-to-medium duration profile.”

The NFO period of SBI Magnum Children’s Benefit Fund – Investment Plan opens on Tuesday, 8th September 2020, and will close on Tuesday, 22nd September 2020.

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