Higher education is getting more and more expensive in India. Accumulating funds for children’s education is one of the persistent worries in modern families. The SBI Magnum Children’s Benefit Fund is one of the several children’s funds available in the market. Let’s see how it has performed over the years.
It is evident from the nomenclature that SBI Magnum Children’s Benefit Fund is a solution-oriented scheme. The NAV of the scheme as on August 22, 20224 is Rs 40.70. Its expense ratio is 1.21%, whereas the category average is 2.03%. The size of the fund is Rs 2,571.71 crore. It is ranked “very high” in the risk-o-meter.
Lump sum returns
Rs 10,000 invested 3 months ago in this fund generated a return of Rs Rs 11,650; 6 months ago would provide Rs 12,657; 1 year ago would provide Rs 14,350; 2 years ago would fetch Rs 17,289, 3 years ago provided Rs 20,944 and since inception (September 29, 2020) generated Rs 40,473.
SIP returns
If one started an SIP (Systematic Investment Plan) of Rs 1,000 in this fund 1 year ago, the returns would have been Rs 15,306; 2 years ago it would have delivered Rs 35,148 and 3 years ago the same SIP would have generated Rs 57,075.
Fund composition
According to Value Research, the fund has invested 84.48% of its money into equities, 1.19% into real estate and 14.33% is cash or cash equivalent.
Sectors
The sectors where SBI Magnum Children’s Benefit Fund has invested the most are consumer discretionary (16.99% of its funds), financials (16.93%), technology (13.57%), industrials (12.66%), healthcare (9.76%), consumer staples (9.31%) and materials (5.26%).
Top stocks
The top stocks chosen by this fund are Dodla Dairy, Le Travenues Technology, Shakti Pumps, Kalpataru Project, Indus Towers, Kotak Bank, Gokaldas Exports, ICICI Bank, Hatsun Agro, Muthoot Finance, Alphabet Inc, EID Parry. It has also invested in NHIT which is an infrastructure investment trust and a debt instrument.
One can invest a minimum of Rs 5,000 in the fund as a lumpsum. A minimum of Rs 500 can be invested I the SIP mode, according to the website of SBIMF. The fund has a Beta of 0.67 which indicates that it is less volatile that its benchmark CRISIL Hybrid 35+65 Aggressive Index.
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SBI Magnum Children’s Benefit Fund: 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 capitalisations. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
