If you're a new parent or planning for your child's future, here's a financial opportunity worth understanding. With just a ₹2,000 monthly SIP, you could potentially build a corpus of ₹3 crore for your child by the time they turn 20. The investment vehicle making this possible is the SBI Magnum Children's Benefit Fund, one of India's best-performing long-term mutual funds designed exclusively for children's education and future needs.
The SBI Magnum Children's Benefit Fund (Investment Plan) is an open-ended hybrid mutual fund scheme launched by SBI Mutual Fund. It's designed to help parents systematically invest and build a corpus for their child's future goals - such as higher education, marriage, or setting up a career.
Unlike regular mutual funds, this plan specifically caters to child-benefit goals and comes with a mandatory lock-in period of 5 years or until the child attains 18 years of age, whichever is earlier.
| Particular | Details |
|---|---|
| Fund Name | SBI Magnum Children's Benefit Fund - Investment Plan |
| Category | Hybrid Fund (Equity-oriented) |
| Fund Type | Open-ended (with lock-in) |
| Launch Date | February 2011 |
| Minimum SIP Amount | ₹500 (recommended ₹2,000 or more for goal-based investing) |
| Lock-in Period | 5 years or until the child turns 18 |
| Fund Manager | Mr. Dinesh Ahuja |
| Past 5-Year CAGR Return | ~36% (as per recent data) |
| Benchmark Index | CRISIL Hybrid 35+65 - Aggressive Index |
Let's break down the math:
Monthly SIP: ₹2,000
Investment Tenure: 20 years
Total Investment: ₹2,000 × 12 × 20 = ₹4.8 lakh
Assumed Annual Return (CAGR): 25%-30% (based on long-term performance trend)
Result: At 30-36% CAGR (as the fund achieved historically in recent years), the maturity corpus could reach ₹2.5 crore - ₹3 crore over 20 years.
Note: Mutual fund returns are market-linked and not guaranteed. The ₹3 crore figure is based on past performance and assumes consistent SIPs and strong market growth.
Unlike most mutual funds available on platforms such as Zerodha, Groww, Dhan, Angel One, or Upstox, the SBI Magnum Children's Benefit Fund requires investors to apply directly through the SBI Mutual Fund website or official partner channels.
That's because:
It's a specialized child-focused fund with additional documentation (child's name, age proof, guardian details).
Third-party brokers and apps don't currently support these specific KYC-linked investment plans.
If you wish to start a SIP in this plan, here's the step-by-step guide:
"SBI Magnum Children's Benefit Fund - Investment Plan"
Parent/guardian PAN & KYC
Child's name and date of birth
Investment mode (monthly SIP / lump sum)
Once registered, your SIP will automatically debit monthly and invest into the fund.
Child-focused goal planning - The investment automatically locks in until the child's adulthood, ensuring funds are used only for their benefit. Long-term compounding - The fund's high equity exposure helps maximize growth potential over 15-20 years. Tax-efficient growth - LTCG tax of only 10% after 1 year, compared to higher tax on fixed deposits. SBI Trust Factor - Managed by India's largest public sector mutual fund house with over ₹9 lakh crore AUM. Optional one-time or SIP investment flexibility - You can choose between lump-sum investment or monthly SIPs.
| Period | CAGR Returns* |
|---|---|
| 1 Year | ~45% |
| 3 Years | ~28% |
| 5 Years | ~36% |
| Since Inception | ~15% |
Data based on past performance. Mutual fund investments are subject to market risks.
Parents of newborns or young children (0-10 years).
Investors who want to build a long-term education corpus.
Those comfortable with equity exposure and seeking inflation-beating returns.
Families preferring tax efficiency and SBI-backed security.
Starting early is the key to wealth creation. A small monthly SIP of ₹2,000, when sustained for 20 years, can potentially transform into a multi-crore fund for your child's future.
While the ₹3 crore projection depends on long-term market performance, SBI Magnum Children's Benefit Fund has proven to be one of the most consistent performers in the hybrid fund category.
For parents who believe in disciplined saving and want to secure their child's tomorrow - this SBI fund is worth serious consideration.
Disclaimer: Mutual fund investments are subject to market risks. Past performance is not indicative of future results. Please read the scheme information document carefully before investing.