March 2018



Dear Investors,

Indian equity markets remained volatile in the month of February 2018. Equity markets saw corrections breaking the continuous upward trend seen last year. S&P BSE Sensex was down 5% and Nifty 50 delivered -4.9% returns in the month of January 2018. Market sentiments were dented post the budget which was focused more on rural and agricultural segment, with introduction of LTCG tax and volatility in global markets. Mutual funds on the other hand continued its streak with positive net inflows of ₹12,000 crore in the month of February 2018.

Volatility is an inherent nature of the market and trying to time the market is what many investors attempt to do – mostly with very small success rate. Investors tend to buy when markets are high and start selling in fear when the markets are moving down. In an attempt to time the market, investors tend to give in to make investing more complex, which can further lead to unanticipated consequences.

The thing that would work best for an investor is to be keep it simple with a disciplined long-term investment approach. Regular investments on a periodic basis without the need to get into the complexities of deciding what would work in the short term helps investors generate better returns. However, investors find it more difficult to keep it simple so they must avoid all the market noise.

Investments can be simplified with investors opting for long term investments in categories such as large-cap fund, mid-cap fund or any other category based on their risk and return expectations. For short term, investors can look at funds such as Arbitrage Funds or Liquid Funds. Investors can also opt for specific solutions such as Systematic Withdrawal Plan (SWP) to get regular inflows to meet specific goals and benefit from capital appreciation on the remaining investment.

Keeping this in mind, SBI Mutual Fund has launched Bandhan SWP. Bandhan Systematic Withdrawal Plan is a simple and easy facility to enable investors to take care of their loved ones with regular payout directly in the beneficiary’s account. Investors can invest a lumpsum amount in growth option of any of the eligible schemes of SBI Mutual Fund and fill up the form for Bandhan SWP facility, specifying beneficiary details, withdrawal amount and duration of withdrawals. Bandhan SWP can be availed for your immediate family members which include your parents, child of age 15 years and above, spouse and siblings of age 15 years and above.

We will continue our efforts to simplify investments and offer solutions to cater to different investor requirements. You may get in touch with your financial advisor or visit our website for information on our products.

Warm Regards,

Anuradha Rao
Managing Director & CEO


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