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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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Some Important Abbreviations used in AML-KYC

AML – Anti Money Laundering
ATF – Anti-Terrorist Financing
CAP – Customer Acceptance Policy
CCR – Counterfeit Currency Report
CDD – Customer Due Diligence
CFT – Combating the financing of Terrorist
CRC – Customer Risk Categorization
CTF - Counter-Terrorism Financing
CTR - Cash Transaction Report
FATF – Financial Action Task Force
FEMA – Foreign Exchange Management
FIU-IND – Financial Intelligence Unit India
HNI – High Networth Indivisual
KYC - Know Your Customer
NRI – Non-Resident Indian
PEP – Politically Exposed Person
PMLA – Prevention of Money Laundering Act

STR – Suspicious Transaction Report

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