Out Of India, For Now

I closed my long term Indian Fund (IFN) position last week. Main reason: I don't like outlook of Indian economy for now. Country is in a squeeze: if Central Bank raises rates, economic growth will get even more slow, even recession is possible. If rates are not raised, rupee might dive even lower. Indian economy really needs end of oil subsidies, which will reduce imports and might even spoor some internal drilling. But it's a political suicide for any party at power. They can reduce gold import by imposing duties (and I applaud them for that), but it's not enough.

Thank you, IFN. It paid for itself with dividends, last couple of years I really played with house money. Maybe I'll return to it when situation in India improves.