SBI Mutual Fund has launched SBI Magnum Children’s Benefit Fund – Investment Plan, a solution oriented open-ended fund to enable parents to invest for future education and career of their children.
The fund house has been offering SBI Magnum Children’s Benefit Fund - Savings Plan, which is a predominantly debt-oriented offering.
The new plan of the fund will invest at least 65% of its total corpus in equity and equity related instruments including equity ETFs to avail equity taxation. The fund will also invest its corpus in debt instruments, gold ETFs and REITs/InvITs.
Vinay Tonse, MD & CEO, SBI MF 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. The fund is an ideal fit given its construct of being well-diversified across asset-classes, be it equity, debt or gold.”
Talking about the fund management strategy of the fund, Navneet Munot, CIO, SBI MF said, “Equity portion would be market cap agnostic, while debt portion would be invested in high credit quality portfolio with a short-to-medium duration profile.”
The NFO of the fund opens on Tuesday, September 8, 2020 and closes on Tuesday, September 22, 2020.
