SBI Mutual Fund's scheme for children delivers 35% annual returns in 5 years: All you need to know

'SBI Magnum Children's Benefit Fund - Investment Plan' is an open-ended, solutions-oriented fund for investing in children's future, offered by SBI Mutual Fund. The scheme was launched during the COVID-19 pandemic and recently completed five years since its allotment date of September 29, 2020.

The scheme has garnered attention on social media for delivering 35% compounded annualised returns in five years. This article looks at key features of this scheme, including the fund manager, asset allocation, portfolio, and more.

Before reading further, please note this article is only for informational purposes and it should not be considered a recommendation or investment advice from Upstox.

Further, SBI Mutual Fund also offers another scheme for children named as 'SBI Magnum Children's Benefit Fund - Savings Plan'. Although both schemes sound similar, they are fundamentally different in terms of how they invest. We will look at the difference between the two and more facts in this article:

What is the investment objective SBI Magnum Children's Benefit Fund - Investment Plan?

As per SBI Magnum Children's Benefit Fund - Investment Plan's factsheet for October 2025, 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." The scheme also invests in debt and money market instruments to generate income.

No. Even as the scheme has performed well in the last five years, there is no guarantee or assurance that the same will be repeated in the future. There is also no assurance or guarantee that the scheme's investment objectives will be achieved.

Who are the fund managers?

R Srinivasan is the fund manager for the equity portion. He has been managing this scheme since September 29, 2020. Lokesh Mallya is managing the debt portion of the scheme July 1, 2025. Mr. Srinivasan has a total experience of over 33 years, while Mr Mallya has an experience of over 20 years.

What is the scheme's benchmark?

The scheme tracks CRISIL Hybrid 35+65 -Aggressive Index. The scheme's document says, "The composition of the aforesaid benchmark is such that it is most suited for comparing performance of the scheme. The Trustees reserves the right to change the benchmark in future if a benchmark better suited to the investment objective of the scheme is available."

How does SBI Magnum Children's Benefit Fund - Investment Plan invest?

As per the scheme's information document (SID), it can follow the following asset allocation plan under normal circumstances:

• Equity and equity-related instruments including equity ETFs: Minimum 65%, maximum 100%

• Debt including debt ETFs and money market instruments: Minimum 0, maximum 35%

• Units issued by REITs and InVITS: Minimum 0%, maximum 10%

• Gold ETFs: Minimum 0, maximum 20%

As of October 31, 2025, the scheme's assets were allocated as below:

• Large-cap stocks: 18%

• Midcap stocks: 11.17%

• Small-cap stocks: 49.07%

• Treasury bills: 0.21%%

• Foreign equity shares (Renew Energy Global): 3.61%

• Cash, cash equivalents, derivative margin and others: 17.94%

• Financial Services: 17.46%

• Fast Moving Consumer Goods: 10.34%

• Automobile And Auto Components: 8.12%

• Consumer Services: 7.91%

• Textiles: 7.42%

• Power: 7.37%

• Capital Goods: 6.77%

• Chemicals: 6.77%

• Consumer Durables: 6.24

• Realty: 2.44%

• Forest Materials: 1.01%

• Sovereign (T-Bills): 0.21%

• Cash, Cash Equivalents And Others: 17.94%

Source: SBI Muutal Fund Facsheet, October 2025

How has SBI Magnum Children's Benefit Fund - Investment Plan performed since launch?

As per SID, during FY 2021-22, both direct and regular plans of the scheme generated over 60% returns. They witnessed a dip during FY 2022-23 with below 10% returns. However, the scheme made a comeback in FY 2023-24, recording over 30% returns for both direct and regular plans. In FY 2024-25, the scheme delivered over 20% returns.

The scheme's returns over the past one- and three-year periods are as below, as per AMFI data:

Direct plan: 25.75% Regular plan: 24.30%

Direct plan: 17.87% Regular plan: 16.96%

The scheme has comprehensively outperformed its underlying index across 1-,3-, and 5-year durations.

Key investment details

Investments in this scheme can be made only in the name of a minor, represented by a guardian. The scheme document says, "Investments can be made only in the name of Minor represented by Guardian (Adult Resident Individuals or Non-Resident Adult Individuals)."

The scheme offers regular and direct plans. Also only growth option is available. The minimum investment allowed is ₹5000 and in multiples of ₹1. Additional investment of ₹1000 and ₹1 can be done.

The scheme also allows a monthly SIP of ₹1000 and in multipes of ₹1 thereafter for minimum six months or minimum ₹500 and in multiples of ₹1 for minimum one year.

While SBI Magnum Children's Benefit Fund - Investment Plan aims to deliver long-term capital appreciation by predominantly investing in equity and equity-related instruments, the SBI Magnum Children's Benefit Fund - Savings Plan invests predominantly in debt and money market instruments.

As of October 31, the investment plan had over 78% exposure to equity, while the savings plan had only 17.83% allocation towards equity and the rest towards debt instruments and cash.