Investments

Stock Market

Global markets recovered on expectation that worst fears are already factored into the prices. There are some nascent signs of economic recovery as well. Market is the midst of a very strong bear market rally. Economic deterioration may have slowed down but it is still in declining phase and this may cause rally to suddenly reverse if bounceback runs ahead of fundamentals.

FII are again started purchasing Indian stocks on net basis which is positive. Valuations are attractive and downside risk is limited from these levels. Markets are showing considerable strength inspite of bad news. Negatives include - Possibility of major US auto companies going bankrupt, declining economic indicators especially from Europe and Japan & uncertainty over next government.

 

Insurance

SBI Life is now offering SBI Smart ULIP. A unit linked (stock market related) insurance plan. Here the scheme tries to give certain protection to the invested amount. This scheme offers NAV guarantee – Investors are guaranteed highest NAV (net asset value) of 168 months. Maturity is at 10th year and proceeds are tax free. Age bracket is 8 to 60 years. Minimum investment Rs.50,000/-. Premium Payment period is 3 or 5 years. Charges are lower.

Please contact your SBI branch or us for more details.

 

Mutual Fund

SBI Mutual Fund launched Gold Exchange Traded Scheme (GETS). It is very convenient way of investing in Gold. All you need is a valid Demat Account. Each unit of GETS will be roughly equal to 1 gram of Gold. It will be listed at stock exchange and after listing investors can buy and sell units of GETS at stock exchange freely. The advantage over physical gold is security, liquidity and convenience. Investors need not worry about purity of gold and can invest with minimum Rs 5000/-.

Please contact your SBI branch or us for more details.

 

Bank Deposits

As inflation is dropped below one percent - real rate of interest (interest rate minus inflation) is at high levels during recent times. If inflation remains below 1 percent chances of interest rates coming down substantially is higher. Going for fixed deposits quickly is advisable in such scenario.