The SBI Magnum Children’s Benefit Fund has gained attention by multiplying investors’ money four times in just four years. Introduced by SBI Mutual Fund, this scheme aims to help parents build a secure financial future for their children. Offering both lump sum and SIP (Systematic Investment Plan) options, the fund has delivered impressive returns, making it a preferred option for long-term savings.
Key Highlights of SBI Magnum Children’s Benefit Fund
This open-ended scheme is focused on generating capital growth for children’s education and important life events. It comes with a lock-in period of at least 5 years or until the child reaches adulthood, ensuring disciplined long-term investment.
- Launch Date: 29th September 2020
- AUM (Assets Under Management): Rs. 2,859.9 crore (as of 30th September 2024)
- Risk Level: Very High
- Minimum Investment: Rs. 5,000 for lump sum, Rs. 500 for SIP
- Exit Load:
- 3% if withdrawn within 1 year
- 2% after 1 year but within 2 years
- 1% after 2 years but within 3 years
- No exit load after 3 years
Impressive Fund Performance at a Glance
SBI Magnum Children’s Benefit Fund has outperformed its benchmark, CRISIL Hybrid 35+65 – Aggressive Index, across all time frames. Below are its returns:
- 1 Year: 46.36%
- 3 Years: 25.38% CAGR
- Since Inception (4 Years): 43.43% CAGR
Benchmark Returns (CRISIL Index):
- 1 Year: 28.6%
- 3 Years: 13.61%
- Since Inception: 19.67%
Growth of a Rs. 1 Lakh Investment
- After 1 Year: Rs. 1,46,670
- After 3 Years: Rs. 1,97,240
- After 4 Years (since launch): Rs. 4,24,060
SIP Returns: Consistent Growth Over 4 Years
If an investor started with a Rs. 10,000 monthly SIP four years ago, here’s how the fund performed:
- Total Investment: Rs. 5.8 lakh
- Fund Value after 4 Years: Rs. 13.51 lakh
This significant growth reflects the consistency of returns over time, making the fund an attractive option for those committed to regular savings.
Portfolio Breakdown and Sector Exposure
SBI Magnum Children’s Benefit Fund maintains a diversified portfolio to manage risks and maximize returns.
Top Holdings:
- Hutson Agro Products Ltd.: 5.96%
- Muthoot Finance Ltd.: 5.48%
- Brainbees Solutions Ltd.: 5.04%
- Renew Energy Global: 4.72%
- Shakti Pumps India Ltd.: 4.49%
Sector Allocation:
- Financial Services: 21.1%
- Consumer Goods: 9.62%
- Consumer Services: 8.77%
- Textiles: 7.34%
- Cash and Cash Equivalents: 13.26%
Fund Managers and Strategy
The fund is managed by seasoned professionals:
- R. Srinivasan (since 2020)
- Rajeev Radhakrishnan (from November 2023)
- Pradeep Kesavan (from December 2023)
With a balanced mix of equity and debt, the fund aims to deliver steady returns while minimizing risks.
Who Should Invest in SBI Magnum Children’s Benefit Fund?
The scheme is ideal for parents looking to secure their children’s future through long-term investments. Its lock-in period ensures disciplined saving, while the low SIP threshold of Rs. 500 makes it accessible for small investors.
However, since the fund carries a “very high” risk rating, it is recommended for those with a higher risk tolerance and a long-term investment horizon. Parents can use this fund to build a corpus for their child’s education, marriage, or other significant expenses.
