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Children Education Planning with SBI Children's Benefit Calculator

Prepare for your child's treasured dream through investing in SIP

Cost listed is indicative only for the goal selected and is for illustrative purpose only.


5,20,00,000
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The historical returns for various asset classes on a CAGR basis from 1981 to 2020,

BSE Sensex 14.06%

PPF 9.41%

Fixed Deposit 8.62%

Gold 8.48%

Silver 6.92%

Inflation CPI 6.52%

Source: Bloomberg, Govt. websites, RBI, SBI. Data as on March 2020. Past performance may or may not be sustained in future. This is purely for illustrative purposes and should not be construed as any assurance or indication of future returns. The above instruments are strictly not comparable in nature. Please note that investment in equities carries high risk.
info_outline

The historical returns for various asset classes on a CAGR basis from 1981 to 2020,

BSE Sensex 14.06%

PPF 9.41%

Fixed Deposit 8.62%

Gold 8.48%

Silver 6.92%

Inflation CPI 6.52%

Source: Bloomberg, Govt. websites, RBI, SBI. Data as on March 2020. Past performance may or may not be sustained in future. This is purely for illustrative purposes and should not be construed as any assurance or indication of future returns. The above instruments are strictly not comparable in nature. Please note that investment in equities carries high risk.

Here is your recommended investment

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25,000 monthly or 10,00,000 one time

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You can achieve the same goal with ₹1,00,000 / monthly by doing an annual top up of

Note :

- This calculator is designed to help investors in ...determining the appropriate amount accumulated through SIP investment or lump sum based on assumed rate of returns and does not guarantee any returns. The calculations are not based on any judgments of the future return of the debt and equity markets / sectors or of any individual security / Schemes and should not be construed as promise on minimum returns and/or safeguard of capital. These Calculators alone are not sufficient and shouldn't be used for the development or implementation of an investment strategy. There is no warranty about the accuracy of the calculators/ reckoners. The recipient is advised to consult his or her financial advisor/ tax consultant prior to arriving at any investment decision. The calculation is based on Monthly SIP with selected top-up frequency viz, half yearly or yearly basis on the basis of assumed rate as selected by you. The returns are shown point to point in absolute terms.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The current cost of goals listed is taken from https://collegedunia.com/. Overseas cost is converted into rupees at current rates as on 28th August,2020 (1$=73.41 INR). Kindly note these costs are for illustrative purposes only and are subject to change in the future. Investors are advised to check the current cost of the educational courses selected and consult their financial advisor before arriving at any investment decision. Read More

Where should I invest for my child's future?

SBI Children's Benefit Fund

MODERATELY HIGH

Type of Scheme : An open-ended fund for investment for children having a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier)

Click here to download plan in PDF How to invest?

Where will your money be invested?

Where will your money be invested?

Investment Objective

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 capitalizations. The scheme will also invest in debt and money market instruments with an endeavour to generate income. However, there can be no assurance that the investment objective of the Scheme will be realized

Key Features

  • This scheme predominantly invests in equity and equity related securities of companies
  • It can have allocation to gold, debt and money market instruments with an endeavour to generate income
  • Ideal for child aged 1 - 14 years, for growth opportunities over the long term
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BePrepared with SBI Magnum Children's Benefit Fund

As parents, do not strive for perfection but #BePrepared to support them financially in the future.

Frequently asked questions

1. Can I, as a parent invest in name of my child from my bank account?

Investments can be made only in the name of a Minor represented by a Guardian (Adult Resident / Non-Resident Individuals). Payment for the investment can be made by means of Cheque / Online Transfer or any other mode from the bank account of the minor or from a joint account of the minor with the guardian only. Investments cannot be made in the name of minor from the parent bank account.

2. Can a grandparent or a relative invest in the name of the child ?

Grandparents can transfer funds to the child's bank account / joint bank account of child with guardian as a gift which could subsequently be used to invest in the fund. A grandparent or a relative can only invest in the name of the child directly, only if he/she is the legal guardian appointed by a court.

3. Once the minor turns into major, will joint account be allowed for redemption proceeds?

Once the minor turns into major, it is expected that he/she should get the status updated in their bank account as well. Subsequently the bank account with joint names, 1st being the Major Holder & 2nd being the parent can be registered in the folio. Yes, redemption proceeds can be credited to such account.

4. After my child turns 18, can I initiate any transaction before the status of my child has been changed from minor to major?

No transactions will be not be allowed. Upon the minor attaining the status of major, the minor in whose name the investment was earlier made, shall be required to provide PAN, KYC details & updated bank account details including a cancelled original cheque leaf of the new bank account, to change the status from minor to major. The investment made in the scheme can continue to remain invested, however no fresh investment is allowed after the child turns 18.

5. Is there a lock in period in the scheme?

Yes, the scheme has a lock-in for at least 5 years or till the child attains age of majority (whichever is earlier). For.eg A child who started investing at the age of 15 will be able to redeem after the child turns 18, as this is earlier than the lock-in of 5 years.

6. How many SBI MF schemes are there in the Solution Oriented - Children's Fund category?

In addition to the current scheme, SBI Magnum Children's Benefit Fund - Savings Plan which is debt oriented and is suitable for risk averse investors, we also have the new fund offer for SBI Magnum Children's Benefit Fund - Investment Plan which is equity oriented (endeavour is long term wealth creation).

7. Is there an exit load in this scheme? Is it the same across plans?

Yes, there is an exit load which is applicable for both plans and is as follows:

For all investments with respect to units not subject to lock-in period and the holding period is less than 3 years:
  • 3% for redemption/switch out on or before 1 year from the date of allotment
  • 2% for redemption/switch out after 1 year and up to 2 years from the date of allotment
  • 1% for redemption/switch out after 2 years and up to 3 years from the date of allotment
Nil for redemption or switch-out after 3 years from the date of allotment.

8. Can I switch my existing investment from SBI Magnum Children's Benefit Fund - Savings Plan to SBI Magnum Children's Benefit Fund - Investment plan?

Yes, it can be done after the lock -in period of the existing fund is over.

9. Can the existing investment done when the child was a minor, continue to remain invested in the scheme, post the child becoming a major?

Yes, the existing investment can continue to remain in the scheme even after the minor child becomes a major till the time the investor wishes to keep it.

10. Once the status of the child is changed from minor to major, can I as a parent / legal guardian invest in the existing folio through the major bank / my joint bank account with major?

No, the investments in these schemes can be only made in the name of minor. Once the minor turns into major, no investments can be made in these schemes.

11. What action is required when the minor turns into major?

An intimation will be sent to unit holders advising that the minor (on attaining majority) should submit an application along with certain prescribed documents enabling the change the status of the account from 'minor' to 'major'.

Upon the minor child attaining the status of major, PAN & KYC details of the child, the updated bank account details (including a cancelled original cheque leaf of the new bank account is required to be submitted. Further transactions shall only be allowed only after the status of the minor is changed to major.