Expressing optimism over India’s economic growth prospects, global ratings agency Fitch Ratings in its latest Global Economic Outlook (GEO) has revised its Gross Domestic Product (GDP) growth estimates for India upward to 7.0 per cent for the financial year 2024-25 (FY25) from 6.5 per cent its earlier projection in December. The revision in growth estimates is attributed to strong demand within the country and steady growth in confidence levels among businesses and consumers. The agency’s upgrade comes after the economy expanded by 8.4 per cent in Q3FY24, the fastest in 18 months, mainly due to strong manufacturing and construction activities.
With GDP growth having exceeded 8% for three consecutive quarters, it expects an easing in growth momentum in the final quarter of the current fiscal year, implying an estimate of 7.8 per cent for growth in FY24. Its forecast for the current fiscal year is higher than the government's estimate of 7.6 per cent. Fitch highlighted that domestic demand, particularly investments, will be the “main driver of growth”, supported by high levels of confidence among businesses and consumers. It predicts that growth will be higher than normal in the short term but will slow down towards a more sustainable pace in the fiscal year starting April 2025.
On the inflation front, the agency anticipates it to gradually decrease to 4 per cent by the end of this year. It expects gradual decrease in inflation with assumptions that recent fluctuations in food prices will settle down. Regarding repo rate, it said the Reserve Bank of India (RBI) likely to reduce the repo rate - or the key interest rate at which it lends money to commercial banks - by 50 basis points (half a percentage point) between July and December. The RBI has kept the repo rate unchanged at 6.50 per cent for the past six meetings and has reiterated its commitment to achieving a sustainable 4 per cent inflation target.
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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