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December 2011

After posting some decent gains in the month of October, markets slipped again in the month of November. Weak economic data reflecting slowdown in growth and high inflation continue to depress market sentiments. Crisis in the Euro zone was also responsible for the dampened sentiment. The rupee weakened further in the month of November and lost 7.5%, posting its steepest decline in one single month and touched an all-time low of 52.50 against the dollar.

BSE Sensex and S & P Nifty lost 8.93% and 9.28% respectively during the month. BSE Midcap and BSE Small Cap also showed significant downturn of 10.64% and 12.58% respectively. BSE Realty was the worst performing sector in the month losing a whopping 18.16%, whereas BSE FMCG was the least affected sector as it lost just 3.71% during the month. 

Equity markets continue its trend of being volatile and hence the better way to invest in equity markets is through Systematic Investment Plan (SIP) which helps you to build wealth in the long run and you don’t have to worry about timing the market as well. 

Tax planning would be on top of the mind for the salaried class and investing in Equity Linked Savings Schemes (ELSS) has always been one of the popular options to save Tax. Magnum Taxgain Scheme is the flagship ELSS scheme from SBI Mutual Fund and offers investors an avenue to get potential gains from the equity markets, and at the same time save tax under Section 80C. Please feel free to approach your nearest SBI Mutual Fund Investor Center to know more about how to save taxes with Magnum Taxgain Scheme.

SBI Dynamic Bond Fund continues to perform well and we would recommend investors to invest in this scheme to benefit from the rallies in bonds. Other liquid and short term funds also continue to be attractive investment options to invest your short term surplus funds.

We are absolutely committed to providing unparalleled service to our investors and to cater to your information, investment and servicing needs. Please feel free to call at our dedicated customer care numbers 1-800-425-5425 (MTNL/BSNL users only) and 080-26599420 from Monday to Saturday (8am – 10pm) or write to us at with your queries. Alternatively you can also visit your nearest Investor Service Centre / Investor Service Desk for any assistance.