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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 5 of 5


14.   Annual Depreciation
a.   Straight Line Method – Depreciation is allocated uniformly over life of the property and generally adopted for tax calculation

Annual Depreciation D = C-S/n
        Where C – Original Cost
                   S – Salvage Value
                    n- Building Life (in Years)

b.   WDV (Written Down Value) Method – It is assumed that the property will lose value by a constant percentage of its value at the beginning of the year. The amount of depreciation goes on reducing every year because when depreciation is charged at fixed percentage, the capital value of asset decreases by depreciation charged every year.
                WDV = C (1- p)n
Where C – Original Cost
n- Life in years
p – Percentage


Part 1         Part 2       Part 3       Part 4 
Other Important Topics

RetailBanking  - > Valuation of RealProperty

      YP - Year Purchase

      FSI/FAR (Floor Space Index or Floor SpaceArea)
      Sinking Fund
      Depreciation
Retail Banking – > Lender’s AppraisalProcedure
Moratorium
Powerof attorney
EquatedMonthly Installment (EMI)
Check-offFacility
         Loan Repayment through Post Dated Cheques (PDCs)

Mortgage As Security

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