The government is expected to revise its GDP forecast of 9% for the current financial year. The downward revision is expected because of the rising global commodity prices and high inflation. Earlier, many international and national organizations had also revised downward their forecast of growth on account of high inflation, the steepest being the Goldman Sachs that had cut growth estimate for the 2011-12 by over a percent to 7.8% from 8.7% estimated originally. Another international organization, OECD has projected the Indian economy to expand 8.5% in 2011-12, much lower than the growth of 9.6 percent witnessed in 2010-11 financial year. Two other international bodies, the International Monetary Fund and the World Bank too had forecast that India's economy would grow at 8 per cent and 9 per cent, respectively. While, on the domestic front the Reserve Bank of India has reduced the growth target of Indian economy at about 8% in the current financial year after it increased the policy rates for the ninth time in over a year.
The mid-term review of the economy was due in October 2011, but the finance ministry has decided to review its forecast next month itself because of the fast changing economic conditions. Chief Economist Advisor Kaushik Basu said, “This year, because of changing global scenario and many other important organisations having downgraded India’s growth rate, we have decided that we would go back and take another look at our (GDP) numbers in mid-June”. However, Basu expects a small revision in the forecast. Finance Minister has also hinted that high inflation and any further rise in crude oil prices may pull down India’s economic growth to 8% from a projected 9%.
The Wholesale Price Index inflation marginally decreased to 8.66% in April from over 9.04 % in March but may accelerate again after the increase in petrol prices. The government is likely to increase the prices of diesel, kerosene and LPG, in order to reduce the revenue losses of Oil Marketing Companies.
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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