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SBI Mutual Fund Launched SBI Magnum Children’s Benefit Fund -Investment Plan

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SBI launches Children’s Benefit Fund, with provision for gold and global equityOn 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