Mutual Fund News : NFO Update: SBI Magnum Children's Benefit Fund-Investment Plan

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SBI Mutual Fund (MF) has launched an open ended solution oriented scheme - SBI Magnum Children's Benefit Fund-Investment Plan, that offers investment option for children. The fund will have a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier).

The investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across sectors and market capitalizations. The scheme will also invest in debt and money market instruments with an endeavour to generate income.

SBI Magnum Children's Benefit Fund-Investment Plan will predominantly invest (at least 65%) in Equity and Equity related instruments including equity ETFs, and up to 35% in Debt including debt ETFs and money market instruments. The fund also holds flexibility to invest up to 20% of its assets in Gold ETFs, whereas up to 10% in Units issued by REITs and InvITs.

The scheme’s performance will be benchmarked against CRISIL Hybrid 35+65-Aggressive Index.

It will be managed by Mr R Srinivasan (Equity), and Mr Dinesh Ahuja (Debt), whereas Mr Mohit Jain shall manage investments in foreign securities of the scheme.

While the scheme has no Entry load, the Exit load will be 3% for redemption/switch out on or before 1 year from the date of allotment, 2% for redemption/switch out after 1 year and up to 2 years from the date of allotment, 1% for redemption/switch out after 2 years and up to 3 years from the date of allotment, and nil for redemption or switch-out after 3 years from the date of allotment

The NFO opens for subscription on September 08, 2020 and closes on September 22, 2020. The scheme will reopen for fresh investments within Five Business Days from the date of allotment.

The fund NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).