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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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Trial Balance and Some Errors (Summary)

1. A trial balance is a statement showing debit and credit balances taken from ledger including cash and bank balances as are particular date.

2. The main purpose of trial balances is to find out the arithmetical accuracy of the entries made in the books of account.

3. An error of omission occurs when a transaction is completely or partially omitted from being recorded in the books of account.

4. When two or more errors are committed in such a manner that they nullify the wrong effect of each other they are called compensating error.

5. Errors of principal occur when accounting principal is not observed.

6. One side errors, located before preparing the trial balance, can be rectified by making a correction entry on the relevant side of the account.

7. One side error, located after preparation of the trial balance but by preparing the final account can be rectified through the suspense account.

8. One side error, affecting nominal accounts that are detected after the preparation of the final accounts, are adjusted through the profit and loss adjustment account instead of nominal account.

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