March 2017



Dear Friends,

Indian equity indices recorded impressive gains for the second month in a row with S&P BSE Sensex and Nifty 50 rising around 4% each in February 2017. The Union Budget’s focus on fiscal prudence, with the fiscal deficit target pegged at 3.2% in 2017-18, status quo on long-term capital gains tax on equities along with positive global cues brought in gains for the markets.

The asset management industry has continued to see sustained participation by retail investors with SIPs being the key contributor to the growth. More than 1 crore active SIPs (and growing!) is a testament to the fact that investors are convinced that regular savings every month do help reach one’s financial goals. All it takes is putting aside as low as Rs. 500 a month in an equity-based scheme.

As the number of folios, SIPs and AUMs grow in our industry, one area where I would like to see growth is among women investors. Women investors still form a very small base of the mutual fund investors’ universe, and this needs to change as times are changing. As more women enter the workforce and build successful careers, women have to work towards establishing a ‘new normal’ in their homes and start contributing to investing decisions. The abilities we use in our personal lives can be easily incorporated to our investing life – wanting the best for our money, keeping an eye on what we want (i.e. our goals) and putting aside some amount for a rainy day. It is time to shed the aversion to making decisions on money matters and get involved. Mutual Funds are simpler than you think and offer way more in terms of facilities to invest both online and offline, and are lighter on your budget so you can start investing small amounts today. If in doubt, ask a well-informed friend about how they work, reach out to a financial advisor near you or visit one of our SBI MF branches.

If you are one of those still figuring out tax saving investments, it is still not too late. Equity Linked Savings Schemes (ELSS) from mutual funds are an ideal tax-saving option offering a combination of tax benefit (with a 3-year lock-in) and potential of equity market linked returns in one mutual fund scheme. SBI Magnum Taxgain Scheme, our flagship ELSS scheme with a 23-year history, is a good option. As we always tell our investors, planning taxes should be about more than just saving taxes and ELSS with its twin benefits of equity-market linked returns and tax saving benefits is an ideal option for anyone looking to invest.

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

Warm Regards,

Anuradha Rao

Managing Director & CEO


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