GDP EXPECTED TO SLOWDOWN DESPITE STIMULUS 2.0

Even though the second stimulus is out, it seems it will not help the gross domestic product greatly. The second stimulus has proven to be just a confidence booster. Experts say this stimulus would merely affect the gross domestic product of the nation. They also add that the gross domestic product may further slowdown to 6.7% in this fiscal year 2009 and may be even to around 5.8% in the fiscal year 2010. This is expected due to the high fiscal deficit which occurred due to the economic slowdown last year. The govt. is also not to be blamed as they have taken all possible measures given the fiscal constraints and with banks left with very little.

ENTRY LOAD TO GET HIGHER

The last year saw almost all stocks and funds tumbling. The equity mutual funds were no exception to this. The equity mutual funds recorded returns from about -35% to almost -60% in the last year. This has forced them to tax the investors in the name of entry load. Entry load is the money that the mutual funds charge the investors in order to pay the distributers for distributing the Christmas Lights, funds. The fidelity mutual fund management had increased its entry load from 2.25% to 3% in the year 2009. This usually results in making the investment in the equities to be long term ones. The other funds are also expected to follow this trend.

David Villa to Barça ???

The much hyped transfer news after the 200 million Euros wastage of Real Madrid is the Spain hitman David Villa’s transfer to Barcelona. The Valencia striker is expected to wear the red and blue shirt for this campaign. Barca have submitted a bid over 40 million € for David Villa. David Villa is a prolific striker who can change the game at any moment. He can get a good support from Barca’s midfield as well as the attacking force. So this move would be wise both for the club and Spaniard. Let’s hope for the best and anything may happen in this transfer season.

3G TO COST DOUBLE

The 3G technology is at present the fastest growing technology in the nation. With just few days remaining for the auctioning of the spectrum, the ministry of finance has shown some hints of increasing the base price of 3G. Base price is the price of 5 MHz 3G spectrum. The department of telecom is expected to fix the higher base price at around Rs.4, 040 crore as recommended by the finance ministry. Though the department of telecom is having slight thoughts on considering the cost, they have left the choice to the cabinet. Though some service providers support this, some are against this last minute hike in the 3G base price.