May 2018



Dear Investors,

Indian equity markets bounced back in the month of April 2018 after seeing a fair share of volatility for the first three months of calendar year 2018. S&P BSE Sensex and Nifty 50 rose 6.6% and 6.2% respectively. Market sentiments during the month were supported with signs for growth pickup and good earnings mix. Mutual funds saw net inflows amounting to ₹1.37 lakh crore in the month of April 2018.

While understanding market dynamics is important, it’s always said that disciplined investing is an important factor to achieve one’s financial goals. Another important factor that investors need to understand is the right asset allocation mix in the portfolio. Asset allocation helps in managing the risk arising out of market uncertainty as the risk is spread across different asset classes such as equity, debt, gold, cash etc. Diversification through asset allocation (right mix of investments) helps in reducing the risk associated with 100% exposure to a single asset class. Investors need to take into consideration three factors before determining the right asset allocation mix i.e. risk profile, investment horizon and required corpus.

Mutual Fund schemes come with an underlying benefit of expert management, who manage the asset allocation based on their view on the market trends, robust analysis of macroeconomic factors and in line with the asset allocation pattern of the scheme. Mutual funds offer asset allocation funds in different categories such as conservative hybrid funds, balanced hybrid fund, aggressive hybrid funds, dynamic asset allocation fund among others to suit the different risk appetite of the varied investors base.

After SEBI’s move on re-categorisation & rationalisation of schemes, there would be only one scheme per sub-category (in a Mutual Fund House) with clearly defined characteristics, thus simplifying the existing product suite. The benefits of these would percolate down to both mutual funds and investors. We believe that simple and easy to decipher product offering are likely to keep investor interest high, thereby increasing product penetration.

In light of the above, we would like to highlight that there are no significant changes in majority of our schemes and all of our schemes now form a part of one of the sub-categories. Existing investors would have received communication highlighting the categories, revised positioning and investment strategy of the schemes as per the new guidelines. Further, the no exit load period given to investors subsequent to the change in fundamental attributes of the schemes ends on 15th May 2018. Effective 16th May 2018 all the SBI Mutual Fund schemes will be in alignment with the new scheme categorization as defined by SEBI.

We would like to assure you that, at SBI Mutual Fund, we would provide our investors with all the support needed so that you can trust us with your investments and future goals. You may get in touch with your financial adviser or visit our website for information on SBI Mutual Fund products. Now you can also invest and track your portfolio with us via our website or SBIMF invesTap.

Warm Regards,

Anuradha Rao
Managing Director & CEO


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