One of the popular mutual fund–based solutions in India is the
SBI Magnum Children’s Benefit Fund – Regular Plan (Growth).
This fund is specifically designed to help parents build a long-term corpus for their child through systematic investing.
What is SBI Magnum Children’s Benefit Fund?
SBI Magnum Children’s Benefit Fund is a solution-oriented hybrid mutual fund offered by
SBI Mutual Fund. The scheme aims to provide long-term capital appreciation by investing in a
balanced mix of equity and debt instruments, keeping children’s future requirements such as
education and marriage in mind.
The fund comes with a mandatory lock-in period, which encourages disciplined, goal-based investing.
Key Details – Regular Plan (Growth Option)
| Feature | Details |
|---|---|
| Fund Type | Hybrid – Children’s Fund |
| Plan | Regular |
| Option | Growth |
| Risk Level | Moderately High |
| Minimum SIP | ₹500 per month |
| Minimum Lump Sum | ₹5,000 |
| Lock-in Period | 5 years or till child turns 18 (whichever is earlier) |
| Fund House | SBI Mutual Fund |
Current NAV (Indicative)
The latest available NAV for SBI Magnum Children’s Benefit Fund – Regular Plan (Growth) is:
₹44+ per unit (NAV changes daily)
Always verify the latest NAV on the official SBI Mutual Fund website or your investment platform before investing.
Investment Strategy
- Equity Allocation: Focused on long-term growth by investing in diversified equity instruments.
- Debt Allocation: Provides stability and reduces volatility during market fluctuations.
This balanced approach makes the fund suitable for parents who want growth with controlled risk over a long-term horizon.
Who Should Invest in SBI Magnum Children’s Benefit Fund?
- Parents planning for child education or marriage
- Investors with a long-term horizon of 10–15 years
- Those comfortable with moderate market volatility
- SIP investors looking for disciplined wealth creation
Comparison: SBI Magnum Children’s Fund vs Sukanya Samriddhi Yojana
| Feature | SBI Magnum Children’s Benefit Fund | Sukanya Samriddhi Yojana (SSY) |
|---|---|---|
| Type | Hybrid Mutual Fund (Equity + Debt) | Government-backed Savings Scheme |
| Eligibility | Any child (Minor Account) | Girl child only (below 10 years) |
| Risk Level | Moderate to High (Market-linked) | Very Low (Government guaranteed) |
| Returns | Market-linked, potentially higher in long term | Fixed (~8%+ p.a., revised quarterly) |
| Lock-in | 5 years / Till age 18 | 21 years |
| Tax Benefits | Capital gains tax applicable | EEE – Fully tax-free |
| Best For | Growth-focused parents | Risk-averse parents of girl child |
Taxation
Returns from SBI Magnum Children’s Benefit Fund are taxed as per mutual fund taxation rules.
Capital gains tax depends on the holding period and asset allocation.
Unlike Sukanya Samriddhi Yojana, this fund does not enjoy EEE tax status.
Consult a tax advisor for personalized tax planning.
Pros and Cons
Pros
- Designed specifically for children’s long-term goals
- Higher return potential compared to fixed-income schemes
- Managed by India’s largest AMC – SBI Mutual Fund
- Suitable for SIP-based investing
Cons
- Market-linked returns (no guarantee)
- Lock-in reduces liquidity
- Regular plan has higher expense ratio than Direct plan
Best for Investment
The SBI Magnum Children’s Benefit Fund – Regular Plan (Growth) is a strong option for parents who want
long-term wealth creation for their child and are comfortable with market fluctuations.
For conservative investors seeking guaranteed returns and tax efficiency—especially for a girl child—
Sukanya Samriddhi Yojana remains an excellent choice.
A balanced strategy combining mutual funds for growth and SSY for safety can help create a robust
financial foundation for your child’s future.
Frequently Asked Questions (FAQs)
Is SBI Magnum Children’s Benefit Fund safe?
The fund invests in equity and debt instruments and carries market risk.
It is suitable for long-term investors who can tolerate short-term volatility.
Which is better: SBI Magnum Children’s Fund or Sukanya Samriddhi?
Both serve different purposes. SBI Magnum Children’s Fund offers higher growth potential,
while Sukanya Samriddhi provides guaranteed, tax-free returns.
Can I start SIP for my child?
Yes, you can start a SIP from as low as ₹500 per month in a minor account.
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