April 2017



Dear Friends,

Positive domestic cues enabled domestic indices to be in the positive territory for the third successive month. Benchmarks S&P BSE Sensex and Nifty 50 rose 3.05% and 3.31%, respectively, in March 2017 while in fiscal 2016-17 they gained 17% and 19%, respectively.

The Goods and Services Tax (GST) Bill has been passed in both the Houses bringing India closer to a unified tax regime from July 1, 2017. The landslide victory of the ruling party in Uttar Pradesh assembly elections and Finance Bill passed in the Parliament also boosted sentiments. Earlier in the month, release of stronger-than-expected growth data for the December quarter despite demonetisation of high currency notes in November aided market gains. Strengthening of the rupee against the dollar and robust buying of domestic equities by FIIs (foreign institutional investors) also augured well for the local indices.

The asset management industry has had a stellar year growing at over 35% which is mainly due to a consistent and cumulative effort by regulators to enact investor-friendly regulations; increased reach provided by distributors/financial advisers and performance delivered by mutual funds for investors. The important statistic in the growth is that it has been driven equally by the country’s smaller towns (B15 locations), which is crucial, as we asset managers strive to increase the penetration of mutual funds as an investment option. The Government has also been active with continued inflows into Exchange Traded Funds (ETFs) from the Employees' Provident Fund Organisation (EPFO) and the ETF route being used for disinvestment (CPSE ETFs).

FY 16-17 has been a memorable year for us as well as we have increased our presence in the digital side of the business, enhancing both the investor and distributor platforms with a revamped SBIMF website, SBI Savings Fund app for parking money for very short-term needs, an online app for Android/iPhone platform called invesTap for investors; and finally a SBI MF Partner app and web portal for our distribution partners. In the coming year, I know we must continue to do more in everything that we do, if we have to reach out to more investors and ease the work of our distribution partners.

The start of the financial year is always a good excuse to take a look at our personal finances and planning for tax-saving investments should be done now, rather than waiting for later in the year. Any step-up or increase in investments should be done, after considering bonus/increments, as our investments need to keep pace with our increasing needs. Invest first, then spend should always be the mantra and will help to meet the financial goals in life easier. If in doubt, reach out to a financial advisor near you or visit one of our SBI MF branches.

As always, we value your investments and look forward to your continued patronage.

Warm Regards,

Anuradha Rao

Managing Director & CEO


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