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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 Ratios and Values to Evaluate Public Listed Company/Firm


1. EPS - Earning Per Share

Net Profits (After Deducting The Dividend Paid To Preference Shareholder) / Equity Shares Issued In The Market

2. P/E - Price To Earning Ratio - 

Price Per Share / Earning Per Share

3. P/B - Price To Book Ratio

 Price Per Share / Book Value Per Share

4. Current Ratio - Indicates Liquidity Of The Company

Current Assets / Current Liabilities

>= 1 value indicates good liquidity position.

5. Debt To Equity Ratio - Shows Relation Between Debt and Shareholders' Equity

Total Liabilities / Shareholders' Equity

< 1 value is considered favorable.

6. RoE - Return on Equity - Indicates Ability To  Generate Profits Using Shareholders' Money.

Net Income / Average Shareholder Equity




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