On September 8, 2020 SBI Mutual Fund launched SBI Magnum Children’s Benefit Fund -Investment Plan), an open-ended fund for parents to invest for their children. It is a part of SBI Magnum Children’s Benefit Fund. SBI Magnum Children’s Benefit Fund has already offering savings plan, a predominantly debt-oriented offering.
The New Fund Offer (NFO) is open for subscription from September 8 and will close on September 22, 2020.
Features of SBI Magnum Children’s Benefit Fund-Investment Plan
Lock-in
The fund will have a lock-in for 5 years or until the child attains the age of majority, whichever is earlier.
Invest in Equity & Debt
SBI Magnum Children’s Benefit Fund(Investment Plan) will invest in the following:
- Equity and equity-related instruments including Equity ETFs(Exchange Traded Funds) with a minimum of 65% going up to 100%,
- Debt including Debt ETFs and money market instruments upto a maximum of 35% in REITS(Real Estate Investment Trusts) and InvITs(Infrastructure Investment Trusts) up to 10% and up to 20 % in Gold ETFs.
Note- The fund will focus on AAA-rated papers for the debt portion.
Tax
i.The short-term capital gains tax of 15% will apply, if the holding period is less than a year and long-term capital gains tax of 10% will apply for long holding periods.
ii.The fund will follow a multi-cap approach for the equity portion.
Long-term capital appreciation
This plan is ideal for a 1 year child, when he/she is 14 years old, thus allowing a long-term capital appreciation over the long-term
Additional Info
i.Investment can be made only in the name of the minor from the bank account of the minor or from a joint account with the minor.
ii.For the equity portion of the investment plan, R. Srinivasan will be fund manager and Dinesh Ahuja for the debt portion.
Recent Related News:
i.Axis Bank, India’s third-largest private sector bank, has introduced ‘Liberty Savings Account’ for the Indian Youth, to address the ever changing lifestyle needs of young and digitally interested Indians. It offers a complimentary hospital cash insurance cover of upto Rs 20,000 per year, which covers hospital expenses incurred under COVID -19, which makes this a 1st of its kind savings account to cover the pandemic.
ii.SBI General Insurance Co Ltd launched a 1st of its kind offering, ‘Shagun – Gift an Insurance’, a unique gift of Personal Accident policy which provides complete financial protection to the insured person against uncertainties such as accidental death and partial or total disabilities, and permanent & temporary disabilities resulting from an accident.
About SBI Mutual Fund:
Headquarters– Mumbai, Maharashtra
Managing Director & Chief Executive Officer– Vinay M. Tonse
