The new fund offering opens on September 8 and will close on September 22.
SBI Mutual Fund on September 7 launched 'SBI Magnum Children's Benefit Fund - Investment Plan', an open-ended fund to enable parents to invest for their children's future.
The SBI Magnum Children's Benefit Fund, of which the new offering is a part, currently has the debt-oriented savings plan. The new investment plan will predominantly invest in equity and equity-related instruments, including equity exchanged-traded funds (ETFs), with a minimum of 65 percent and up to 100 percent; debt, including debt ETFs and money market instruments, up to a maximum of 35 percent; up to 10 percent in real estate investment trusts (REITs) and infrastructure investment trust (InvITs); and up to 20 percent in gold ETFs.
The new plan, according to the fund house, will be ideal for a child aged 1-14 years, thereby allowing long-term capital appreciation. The plan also has a lock-in period of five years or till the child turns 18, whichever is earlier.
The new fund offering opens on September 8 and will close on September 22.SBI Mutual Fund MD and CEO Vinay Tonse said the investment plan investment option for parents, given its construct of being well diversified across asset classes: equity, debt or gold.