In a severe disinflationary trend warranting a radical measure, the annual rate of inflation, based on monthly wholesale price index (WPI) ebbed to- 2.65% in April as compared to -2.33% witnessed in March. The number was also way lower than the street expectation of a figure of -2.07% for the month under review.
Meanwhile, February WPI was revised to -2.7% against -2.06% reported earlier. Build up inflation rate in the financial year so far was -0.06% compared to a build up rate of 0.28% in the corresponding period of the previous year. The official Wholesale Price Index for ‘All Commodities’ for the month under review declined by 0.1% to 176.0 (provisional) from 176.1 for the previous month.
The major fall came on the back of cheaper manufactured foods and food items. Food inflation further eased to 5.73% for the month under review against three month low figure of 6.31% in March. Further the manufacturing products index, which occupies the maximum 64.97% weight in the overall index declined by 0.1% to 153.8 (provisional) from 153.9 (provisional) in March. The index for Food & Fuel group, which contributes to 14.91% weight in the overall index, declined by 1.7% to 184.2 (provisional) from 187.3 (provisional) for the previous month due to lower price of furnace oil (9%), petrol and high speed diesel (3% each), aviation turbine fuel (2%) and electricity (1%).
However, the index for primary articles, which occupies 20.12% weight in the overall index, rose by 0.9% to 241.8 (provisional) from 239.6 (provisional) for the previous month.
Notably, this is the sixth successive month of deflating prices, with the latest number pressing the need for radical measures to address this severe disinflationary trend and fuelling renewed demands for further rate cut by the Reserve Bank of India after lower than expected IIP figures and softer than expected retail Inflation data.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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