Dear Investor,
The Union Budget for 2010 has been the highlight for the month of February 2010 for individual as well as for corporate investors. The finance minister announced some landmark decisions, to which the markets have responded positively. From the announcement, it is clear that in view of the Indian Economy’s speedy recovery from the global recession, there would be a gradual exit from protective measures like stimulus and sops, which were meant to guard our economy through the tough phase.

The Union Budget has ensured policies that would encourage steady growth in consumption and add substance to the India Growth story. For individuals, the restructuring of the Income Tax slabs would ensure more disposable income owing to substantial savings in their Income Tax. The corporate tax rates have been left unchanged, however surcharge on tax has been reduced to 7.5% from 10%. Apart from consumption, Infrastructure Development is a key priority of the Government.

The markets responded positively on and after the day of budget announcement. During the month of February 2010, the BSE Sensex grew by 0.44% to close at 16429 points, while S&P Nifty grew by 0.82% to close at 4922 points. On the sectoral side, Automobile sector showed the maximum gain for the month, with almost all the players reporting record sales for the month of February. Expectation of increase in excise duty led to a preponement of demand, and hence a surge in sales. BSE Auto grew by 3.13%. During the month, Realty Sector was among the major losers shedding 7.5%. Widened scope of service tax has had its impact on the sector.

During February 2010, the assets managed by the Indian mutual fund industry (Average AUM) grew by 2.6% to Rs.7.82 lakh crore.  The Average AUM of SBI Mutual Fund stood at Rs. 36,072 crore.

We would like to thank our investors for their continued faith in our flagship scheme – Magnum Taxgain Scheme. The encouraging response to the scheme during the last quarter is a clear indication of our investor’s trust and support. Among our other equity schemes we would like to draw your attention to Magnum Global Fund. With consistent performance, the scheme has been awarded a ‘Five Star’ ranking at ICRA Mutual Fund Awards 2010, in the Open-Ended Equity Diversified category, for its one year performance. Another star performing scheme which we would like to recommend is Magnum Comma Fund. The scheme has been rated five star by Value Research. Feel free to approach any of our Investor Service centres to know more about how to get potential investment benefits from these schemes.

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,