SBI Mutual Fund to launch SBI Magnum Children’s Benefit Fund - Investment Plan
15-day new fund offer to start from 8th September 2020
Mumbai: SBI Mutual Fund announces the launch of SBI Magnum Children’s Benefit Fund - Investment Plan, an open-ended fund to enable parents to invest for their child’s dreams. The Investment Plan is a new offering as part of SBI Magnum Children’s Benefit Fund which currently has Savings Plan, a predominantly debt-oriented offering.
SBI Magnum Children’s Benefit Fund – Investment Plan will predominantly invest in Equity & Equity related instruments including Equity ETFs with a minimum of 65% going upto 100%, Debt including Debt ETFs and money market instruments upto a maximum of 35% in REITS & InvITs upto 10% and upto 20 % in Gold ETFs.
The new Plan would be ideal for a child aged 1 year ideally going up to when he/she is 14 years old, thereby allowing long-term capital appreciation over the long-term. There would be a lock-in period for at least 5 years or till the child attains age of majority, whichever is earlier.
Mr. Vinay Tonse, MD & CEO, SBI Mutual Fund said: “Funding education of their children is the top priority for any parent. Given the dual challenges of 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.”
“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,” Mr Tonse added.
Mr. Navneet Munot, Chief Investment Officer, SBI Mutual Fund said, “Our strategy would be to create a fund portfolio with a combination of high conviction ideas with a long-term orientation within a robust risk management framework. Equity portion would be market capitalisation agnostic, while Debt portion would be invested in high credit quality portfolio with a short-to-medium duration profile.”
Mr. D P Singh, Chief Business Officer, SBI Mutual Fund said: “The aspirations of children today are very different and have been shaped by the strong influence of the evolving media & technology around us. Parents must have a strong financial plan to be prepared for these aspirations. I believe, children-oriented mutual funds are a compelling solution for parents to save for their children’s future as it helps create a separate ‘bucket’ in which they invest only for their child. Such a segregation in their investment can alert them to not dip into and withdraw from this corpus for an impulsive or short-term need. The fund is an ideal fit given its construct of being well-diversified across asset-classes, be it equity, debt or gold.”
‘’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. Starting a SIP and regularly doing a top-up of their SIP amount every year can make funding for their children’s education easier.” Mr. Singh added.
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. The fund managers of the Investment Plan will be Mr. R. Srinivasan for Equity Portion and Mr. Dinesh Ahuja for Debt Portion.