At a time when investors normally look to pure equity funds for high long-term returns, one solution-oriented hybrid fund has quietly outperformed them all. SBI Magnum Children’s Benefit Fund – Investment Plan (Direct Plan) has turned into one of the biggest surprise performers in the market, delivering returns that even top equity schemes haven’t matched.
A solution fund beating equity funds — by a wide margin
Over the past five years, this solution-oriented fund has delivered an impressive 32.61% CAGR, making it the best-performing hybrid fund and also outperforming every equity fund across categories.
To put this in perspective, a Rs 1 lakh lump sum invested five years ago would today be worth Rs 4.10 lakh.
Its SIP performance is equally strong. A Rs 10,000 monthly SIP started five years ago would have grown into a solid Rs 10.77 lakh, translating into a 24.13% CAGR. For a hybrid fund, these numbers are extraordinary.
Why this hybrid fund stands out
Launched on 29 September 2020, the SBI Magnum Children’s Benefit Fund aims to help parents build long-term wealth for their children. Although positioned as a “Children’s Fund,” its performance has attracted investors looking for strong long-term returns with a hybrid structure.
The fund follows an aggressive hybrid strategy, blending equity and debt, but with a clearly equity-heavy approach. Since launch, it has delivered a strong 35.19% return, outperforming many peers. It tracks the CRISIL Hybrid 35+65 Aggressive Index and has a Very High risk rating.
As of 30 November 2025, the fund manages Rs 5,053 crore in assets, while keeping costs low with an expense ratio of just 0.82%. For long-term investors, this cost efficiency adds to overall returns.
Strong risk-adjusted performance
While the fund takes higher risk, its risk-adjusted ratios show remarkably efficient management.
Mean return: 23.73%
Standard deviation: 12.92% (moderate volatility)
Sharpe ratio: 1.35
Sortino ratio: 1.84
Beta: 0.93 (slightly less volatile than the market)
Alpha: 10.55 (significant outperformance vs. benchmark)
These numbers show that the fund isn’t just delivering high returns, it’s delivering them efficiently, rewarding investors for the risk they take.
How the fund’s portfolio is positioned
A big reason behind its performance is its unique sector positioning. Unlike most hybrid funds, which stay conservative, this fund has taken bold sector bets:
Consumer Discretionary: 29.54% (vs 9.13% category average)
Financials: 17.41%
Materials: 9.73%
Consumer Staples: 7.48%
Industrials: 7%
Fund’s top stock holdings
The fund has built a focused, high-conviction equity portfolio. Its top holdings include:
Hatsun Agro – 5.20%
Muthoot Finance – 5.19%
Thangamayil Jewellery – 4.78%
State Bank of India (SBI) – 4.07%
Privi Speciality Chemicals – 3.82%
These picks show a mix of premium consumer brands, market leaders in finance, and niche speciality chemical names, an approach that has helped generate strong alpha.
A powerful performer in the hybrid space
SBI Magnum Children’s Benefit Fund – Investment Plan proves that hybrid funds can deliver equity-like—and sometimes even better—returns when managed with the right balance of risk and aggressive growth bets. Its combination of strong long-term performance, robust risk metrics, and smart sector allocation has made it one of the most compelling funds in the market today.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.
