SBI MF to launch Children's Benefit Fund-Investment Plan on Sept 8

SBI Mutual Fund has announced the new fund offer (NFO) of SBI Magnum Children’s Benefit Fund - Investment Plan. This is an open-end fund that will be part of SBI Magnum Children’s Benefit Fund, which already has a savings plan, a predominantly debt-oriented offering.

SBI Magnum Children’s Benefit Fund – Investment Plan will take exposure to equity and equity-related instruments, including equity ETFs, to the extent of 65-100 per cent. The fund’s mandate allows it to invest in debt instruments, including debt ETFs and money market instruments, up to 35 per cent, in real estate investment trusts (REITS) and infrastructure investment trusts (InvITs) up to 10 per cent, and in gold ETFs up to 20 per cent.

 

Parents should ideally invest in this plan when their child is between the age of one year and 14 years, so that they get the benefit of capital appreciation over the long-term. The plan comes with a lock-in period of at least five years or till the child attains the age of majority. 

Navneet Munot, Chief Investment Officer, SBI Mutual Fund said: “Our strategy will be to create a fund portfolio with a combination of high-conviction ideas with a long-term orientation within a robust risk management framework. The equity portion will be market-capitalisation agnostic, while the debt portion will be invested in a high credit quality portfolio with a short-to-medium duration profile.”

The NFO will close on September 22, 2020. The fund managers of the investment plan will be R. Srinivasan for the equity portion and Dinesh Ahuja for the debt portion.