At a time when most investors choose only equity funds for higher long-term returns, a solution-based hybrid fund has quietly left everyone behind. SBI Magnum Children’s Benefit Fund Investment Plan (Direct Plan) has become a big surprise in the market, giving returns that even top equity funds could not match. In the last five years, this fund has given an annual compound return (CAGR) of 32.61%. It has become the best hybrid fund and is outperforming all types of equity funds.
If you had invested Rs 1 lakh five years ago, its value today would have been Rs 4.10 lakh. Its SIP returns are also quite good. A monthly SIP of Rs 10,000 started five years ago would have reached Rs 10.77 lakh today, i.e. an annual return of 24.13%. This is a pretty impressive performance for a hybrid fund.
Why is this hybrid fund special
Launched on September 29, 2020, the fund aims to help parents accumulate money over the long term for their children’s future. Although it is a children’s fund, due to its excellent performance it is also being chosen by investors who want good returns in a hybrid structure. This fund follows an aggressive hybrid strategy, that is, it has a mix of stocks and bonds, but the majority is kept in stocks. Since its launch, it has given a return of 35.19%, leaving behind many funds. It follows the CRISIL Hybrid 35+65 Aggressive Index and is considered a high risk fund. As of November 30, 2025, the expense ratio of this fund is only 0.82% and it is managing funds worth Rs 5,053 crore. For long-term investors, the benefits of low expense funds are clearly visible on returns.
Strong performance even in terms of risk
This fund takes more risk, but the returns it gives in comparison to the risk are quite good. The average return of the fund has been 23.73%, standard deviation 12.92%, Sharpe ratio 1.35, Sortino ratio 1.84, Beta 0.93 and Alpha 10.55. These figures show that the fund is not only giving high returns but is also generating better earnings while managing the risks.
Key Stocks of the Fund
Fund managers have invested investors’ money in good stocks. Selected few but strong stocks. This includes Hatson Agro, Muthoot Finance, Thangamayil Jewellery, Privy Specialty Chemicals. These companies represent a good mix of strong brands, financial sector leaders and specialty chemical companies, which have provided very good excess returns to the fund.
