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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

Retail Banking – > Lender’s Appraisal Procedure

Three major phases of loan origination –
Information Acquisition – Banks collect fees for processing, documentation and administration from customer.

Credit Appraisal and Sanction – Credit officer scrutinize the information made available to them and arrive at the loan eligibility and fix the terms and conditions to be offered to the customer. Two key techniques are used for this purpose. i) Confirming that the customer satisfies the basic norms an policies ii) By applying weighted risk based credit scoring

Disbursement – Either a cheque for the sanctioned amount is issued to the customer or the amount is transferred to the customer account. A repayment schedule stating the amortization is prepared for the customer.

  • ·         Both fixed rate loans and floating rate loans may be offered.
  • ·    The house/ flat should be insured against the risk of fire/ riots/ earthquake / lightening floods etc.
For More Related Topics Click on
Moratorium
Power of attorney
Equated Monthly Installment (EMI)
Check-off Facility
Loan Repayment through Post Dated Cheques (PDCs)

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