The SBI Magnum Children’s Benefit Fund, launched on September 29, 2020, has delivered a remarkable 44.39 per cent compound annual growth rate CAGR till date. To put it simply, an investment of Rs 10 lakh during the fund’s New Fund Offer (NFO), would have increased to Rs 30.10 lakh today. The same investment in the S&P BSE Sensex TRI would have turned into only Rs 18.06 lakh.
The SBI Magnum Children’s Benefit Fund has also given significant returns for SIP investments in the last three years. For instance, a monthly SIP of Rs 10,000 for 3 years in this scheme would have turned your total investment into Rs 5.41 lakh. You would have earned a return of Rs 1.81 or more than 50 per cent on your SIP investment.
What is the SBI Magnum Children’s Benefit Fund?
The SBI Magnum Children’s Benefit Fund is an open ended scheme for long term capital appreciation. The mutual fund mainly invests in equity and equity-related securities in a number of sectors and market capitalisations. Further, it invests in debt and money market instruments to earn revenue. This plan has a lock-in period of not less than five years or until the child attains majority. This mutual fund investment can prove to be an invaluable tool for parents looking forward to saving for their children’s future needs.
SBI Magnum Children’s Benefit Fund Portfolio
On August 31, 2023, the fund’s AUM was recorded to be Rs 1,182.26 crore. Specifically, AUM is spread over only 29 companies that comprise both domestic and foreign securities. The portfolio’s top five sectors are financial services, chemicals, FMCG, IT, and consumer durables, which make up 65.03 per cent of the portfolio. The primary benchmark for this scheme is CRISIL Hybrid 35+65 – Aggressive Index.
The fund is managed by a team of experienced fund managers of diverse expertise. The team leads an investment approach that is well-balanced and geared towards growth.