SBI Mutual Fund High Return Child Plan:SBI Magnum Children’s Benefit Fund, a scheme of SBI Mutual Fund, has given tremendous returns to its investors. This fund has given more than 38% returns in the last one year, while the amount invested has increased more than 4 times in the last four and a half years. The average annual return of this scheme for the last 3 years has been 23.53%. This fund can be a great option for long term investment for the future of children. But before taking any decision in this regard, it is important to understand the risks associated with this fund.
Objective of SBI Magnum Children’s Benefit Fund
SBI Magnum Children’s Benefit Fund is an aggressive hybrid fund that aims to achieve long term capital growth. This fund mainly invests in equity and equity related securities, which increases the chances of earning long term returns. Along with this, this fund also invests in debt and money market instruments to earn stable income.
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Recent performance of the scheme
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1 Year Returns:38.19% (Regular Plan)
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3 Year Average Annual Return (CAGR): 23.53%(Regular Plan)
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Fund Value: If an investor had invested Rs 1 lakh in this scheme on the launch day i.e. 29 September 2020, then today his fund value would have been around Rs 4,29,060.
The benchmark index of SBI Magnum Children’s Benefit Fund is CRISIL Hybrid 35+65 Aggressive Index, which has given a return of only 12.77% in 1 year, whereas the fund has given many times more returns.
Investment method and minimum investment
SBI Magnum Children’s Benefit Fund can be invested in both lump sum and Systematic Investment Plan (SIP) modes. The minimum investment for lump sum investment is Rs 5,000. If you want to invest through SIP, then the minimum investment for daily SIP is Rs 500, for monthly SIP the minimum investment is Rs 1,000 and for quarterly SIP the minimum investment is Rs 1,500.
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Asset Allocation and Portfolio
The total asset under management (AUM) of SBI Magnum Children’s Benefit Fund is Rs 3,179.93 crore. The scheme has a diversified portfolio, investing in companies of different sizes according to capitalisation, as per the scheme’s December fact sheet:
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Large Cap: 16.85%
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Mid Cap: 11.83%
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Small Cap: 54.45%
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Top 10 Equity Holdings
You can see the top 10 stocks included in the portfolio of SBI Magnum Children’s Benefit Fund and their stake here:
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Muthoot Finance Ltd. : 5.07%
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Shakti Pumps (India) Ltd. : 4.94%
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Brainbees Solutions Ltd. : 4.49%
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Hatsun Agro Products Ltd. : 4.43%
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KPR Mill Ltd. : 3.98%
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Le Travenues Technology Pvt. Ltd. : 3.62%
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Aether Industries Ltd. : 3.55%
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Dodla Dairy Ltd. : 3.53%
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Relaxo Footwears Ltd. : 3.46%
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Adani Ports And Special Economic Zone Ltd. : 3.41%
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What is the benefit of investing in this fund?
Investments in SBI Magnum Children’s Benefit Fund can be made for the education and future needs of children. The scheme has a lock-in period of 5 years or till the child attains majority. Due to this lock-in, long term investment can be made in a disciplined manner. Fund managers also find it easier to take decisions related to long term investments.
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Consider risk along with returns
SBI Magnum Children’s Benefit Fund has given excellent returns since its launch. But the risk level of the fund is very high. Therefore, before deciding to invest, you should assess your risk tolerance. However, making regular investments through SIP over a long period helps in reducing the risk.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment. Take any investment decision only after taking the advice of your investment advisor.)
