Business

SBI Mutual Fund unveils scheme for children

SBI Mutual Fund has unveiled Magnum Children’s Benefit Fund - Investment Plan, an open-ended fund for parents to invest for their children. The scheme, open for subscription from September 8, is a part of SBI Magnum Children’s Benefit Fund that currently has Savings Plan, a predominantly debt-oriented offering. The scheme will predominantly invest in equity and equity-related instruments, said SBI MF, including Equity ETFs with a minimum of 65% going up to 100%, debt including Debt ETFs and money market instruments upto a maximum of 35% in REITS and InvITs up to 10% and up to 20 % in Gold ETFs.

The new plan for children aged 1 year going up to when he/she is 14 years old. There would be a lock-in period for at least 5 years or till the child attains age of majority, whichever is earlier.

Vinay Tonse, MD & CEO, SBI Mutual Fund said,“Funding education of their children is the top priority for any parent. Given the dual challenges of rising cost of education and interest rates coming down significantly, there is a need to look beyond traditional investment options. SBI Magnum Children’s Benefit Fund - Investment Plan is an ideal fit given its construct of being well-diversified across asset-classes, be it equity, debt or gold.”

“Equity asset class as a long-term wealth-creator will help parents in having the right financial support to take care of theirchild’s futureand the sooner they start the better it is,” Mr Tonse added.

Printable version | Oct 29, 2020 9:44:05 AM | https://www.thehindu.com/business/sbi-mutual-fund-unveils-scheme-for-children/article32546536.ece

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