Dear Investor,

The Indian Stock Markets traded in a range with a mix of investors’ sentiments and varying cues from the international markets. Looking at the key indices, BSE Sensex closed 0.95% higher to close at 17868 points, while the S&P Nifty closed for the month at 5367.6 points, up marginally by 1.04%. Among the sectors, there was an overall positive trend, except for few sectors like Oil and Gas, and Healthcare which showed a decline. BSE Oil and Gas and BSE Healthcare showed a decline of 6.5% and 2.64% respectively during the month. Metals and Realty were among the top gainers with BSE Metal and Realty clocking 5.51% and 4.73% growth respectively during the month.

The Reserve Bank of India announced its First Quarter review of its Monetary Policy 2010-11 indicating action against rising inflation. The repo and reverse repo rates were increased by 25 and 50 basis points to 5.75% and 4.50% respectively. The CRR, however, was maintained unchanged at 6%. The markets did not show any sharp reactions to the announcement, since it had already pre-empted and factored in the rate changes by the Central Bank.

During July 2010, the average assets under management (AAUM) showed a marginal decline of 1.5% to close at Rs. 6.66 Lakh Crore. The tightness in liquidity due to outflows of 3G auction and advance tax payments continued to loom during the month. However, during the month, the AAUM of SBI Mutual Fund grew by 14.5% to close at Rs.38,513 crore. We would like to thank the trust and participation of our investors that has been aiding our growth.

Equity as an asset class brings in a great potential for wealth creation that can help an investor build a corpus over a long term. Launched in 1993, Magnum Multiplier Plus is one of our key schemes that has a proven track record. The scheme invests in equities of high growth companies with an endeavor to provide investors with long term capital appreciation. We will be glad to help you further to understand the risk-return profile of Magnum Multiplier Plus, and of our other equity schemes which are designed to help you with a variety of investment objectives. Feel free to approach your nearest SBI Mutual Fund Investor Service Center for more details.

We are absolutely committed to provide unparalleled service to our investors’ and 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 customer.delight@sbimf.com with your queries. Alternatively you can also visit your nearest Investor Service Centre / Investor Service Desk for any assistance.

Regards,