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Understanding ETFs Uses, Returns and Comparison with Mutual Funds and Stocks

 Exchange-Traded Funds (ETFs) have gained popularity among investors for their unique features and benefits. In this blog, we'll explore the uses of ETFs, their potential returns, how they differ from mutual funds and stock investments, and their safety profile. What is an ETF? An ETF is a type of investment fund that trades on stock exchanges, much like individual stocks. It holds a collection of assets, such as stocks, bonds, or commodities, and aims to track the performance of a specific index, sector, or asset class. Uses of ETFs Diversification : ETFs allow investors to gain exposure to a wide range of assets without having to purchase each individually. For instance, an ETF tracking the S&P 500 gives you exposure to 500 different stocks, reducing the risk associated with individual stock investments. Cost Efficiency : ETFs often have lower expense ratios compared to mutual funds. They typically pass on lower management costs to investors since they are often passively man
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Quick Refernce Guide for CAIIB-Retail Banking Part 3 of 5

 7.   Strategy in New Product Development
 








8.   Rule of 72 – Amount or loan will be doubled if no extra transaction will be done in this period. This period can be obtained using below formula
72/rate of interest
So, amount 5000 at interest rate 4% will become 10,000 in
72/4=18 years if no deposit/ withdraw will be done.
And loan amount 5000 at interest rate 10% will become 10,000 in
72/10 = 7.2 Years if no payment will be made.


9.   Time Value of Money – Process of converting future sums into their present equivalents is known as discounting. Compounding is used to determine the future value of present cash flow.
Frequently compounding of interest
Annually = P (1+r)  - Annual Compounding
Quarterly = P (1+r/4)4 – Quarterly Compounding

Monthly = P (1+r/12)12 – Monthly Compounding


Part 1         Part 2       Part 4     Part 5

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