Parents plan for their children’s future with a mix of love, discipline, and long-term financial thinking. Whether through fixed deposits or systematic investment plans in mutual funds, each rupee set aside is meant to one day open doors—be it for education, personal growth, or financial security. With Children’s Day having passed just last week, conversations around future planning for young ones have surged, bringing Children’s Mutual Funds into fresh focus.
These specialised funds offer a structured, market-linked path to build wealth over the long term. In a country where education and life-stage expenses continue to rise, such schemes help parents prepare with clarity and purpose. Among the popular choices today are the SBI Magnum Children’s Benefit Fund – Investment Plan and the ICICI Prudential Children’s Fund—two solutions-oriented schemes designed to support child-centric financial goals. Here is a detailed comparison of the two.
SBI Magnum Children’s Benefit Fund
Launched on September 29, 2020, in the midst of the COVID-19 pandemic, the SBI Magnum Children’s Benefit Fund – Investment Plan has completed five years and quickly gained attention for its impressive performance. The fund has delivered 35% compounded annualised returns since inception, significantly outperforming its benchmark and generating buzz across social media.
The scheme aims to build long-term wealth for children by maintaining a predominantly equity-driven portfolio. As per the October 2025 factsheet, the fund invests across sectors and market caps—large, mid, and small-cap stocks—while also selectively allocating to debt, money markets, REITs/InVITs and gold ETFs.
The equity portion is managed by R. Srinivasan, a veteran in active equity management, while the debt allocation is overseen by Lokesh Mallya. As of October 31, 2025, the fund’s portfolio carries a heavy small-cap tilt of nearly 49%, alongside a sizeable 18% in cash.
Performance across all time periods has been strong. The direct plan delivered 35.22% annualised returns over five years, comfortably beating the CRISIL Hybrid 35+65 – Aggressive Index. The scheme is available only in the name of a minor through a guardian, with minimum investments starting at Rs 5,000 for lump sums or Rs 500–Rs 1,000 for SIPs.
Notably, the fund differs from SBI’s Children’s Benefit Fund – Savings Plan, which leans toward debt. The Investment Plan is structurally aggressive, targeting higher growth by taking higher equity risk.
ICICI Prudential Children’s Fund
The ICICI Prudential Children’s Fund is one of the oldest and most consistent performers in the category. It features a mandatory lock-in of five years or until the child turns 18, encouraging investors to stay focused on long-term goals. The fund takes a diversified approach, combining equity and debt while maintaining flexibility to take select off-benchmark calls.
Its long-term performance has been remarkable. A Rs 10 lakh lump sum investment made in August 2001 would have grown to Rs 3.3 crore by October 31, 2025, translating into 15.58% annual returns, far ahead of the benchmark’s Rs 2.12 crore. SIPs have also delivered strongly: a Rs 10,000 monthly SIP since inception is now worth Rs 2.2 crore, compared to a total investment of Rs 29 lakh.
The fund has beaten its benchmark across one-, three-, and five-year periods. Simulations show that starting early offers massive advantages, as parents who begin investing at birth need to commit significantly lower monthly amounts to reach goals such as RS 50 lakh by age 18.
Head-to-head comparison
While both funds serve the same purpose, they adopt fundamentally different philosophies.
Performance:
ICICI Prudential leads across most timeframes with 14%+ five-year CAGR, versus SBI’s ~12% five-year CAGR since launch. ICICI also outperforms SBI on one- and three-year returns.
Risk profile: SBI Magnum carries significantly higher risk due to a deep small-cap allocation. ICICI maintains a more balanced equity mix and can allocate up to 35% to debt.
Structure: ICICI’s mandatory lock-in enforces discipline. SBI has no lock-in but imposes a 3% exit load within one year.
SBI Magnum Children’s Benefit Fund – ICICI Prudential
Investment Plan Children’s Fund
———— —————————————- ————————
Fund Type Open-ended, solutions-oriented Open-ended children’s
children’s fund fund with mandatory
Lock-in No mandatory lock-in; 3% exit load 5 years or until child
Period within 1 year turns 18
Minimum Rs 5,000 lump sum; Rs 500 SIP Rs 5,000 lump sum;
Investment Rs 500–Rs 1,000 SIP
1-Month 1.84% 3.07%
Return
6-Month Not available Not available
Return
1-Year 6.36% 18.04%
Return
3-Year ~9% CAGR 11.88% CAGR
Return
5-Year ~12.2% CAGR 14.21% CAGR
Return
Equity ~82% 65–100%
Allocation
Debt ~0.2% 0–35%
Allocation
Cash ~18% Varies
Allocation
Market Cap Large 7.55%, Mid 31.55%, Small 39.49% Diversified
Mix large/mid/small
Style Aggressive, small-cap heavy Balanced, flexible
Best For High-risk investors Long-term, stability-focused
Who should invest?
ICICI Prudential suits parents seeking stability and structured long-term compounding.
SBI Magnum is better suited for those willing to take higher risks for potentially higher returns.
Both funds, in their own ways, help parents transform today’s savings into tomorrow’s opportunities—one disciplined, one aggressive, but both built for your child’s future.
Disclaimer: Business Today provides market and personal news for informational purposes only and should not be construed as investment advice. All mutual fund investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.