Feature Post

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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Foreign Exchange Management - Brief Description

  • NRI - Non Resident Indian
  • PIO - Person of Indian Origin
  • Objective of FEMA - To facilitate foreign trade and payment system.
  • Condition of stay in India for resident - 182 days in previous year.
  • PIO - Foreigners but sometime who had Indian passport.
  • AD category -I (commercial bank) , II & III.
  • Facilities for Residents - Use or remittance of foreign remittance FC deposits accounts.


Rules for Indian Currency -

Nepal & Bhutan - Use of Foreign Currency and Foreign Currency remittance not allowed .
  • Indian currency for any amount can be used.
  • Above 25000/- highest denomination Rs. 100

Rules for Foreign Currency

  • FC can be purchased 60 days in advance from authorized person only.
  • Application from - A2
  • Purchase by depositing cash - max 50000/-
  • >50000 - Debit card / Credit card Bank Account.
  • Form of FC - Coins, Currency notes and traveler Cheques.
  • Ceiling on Coins & Currency notes - USD 3000
  • Import of FC - No Ceiling subject to declaration on form CDF to mandatory if (1) total amount >10000 or (2) FC notes > USD 5000
  • Unused FC - All coins and other Forex up to 2000 can be retained and above USD 2000 surrender to authorized person within 180 days or deposit in RFC(D) account.
  • Liberalized Remittance Scheme(LRS) - Remittance up to USD 250000 per financial year allowed for current & capital a/c transaction.
  • Current A/C transaction


    • Private visit to country.                        
    • Gift or donation outside country.
    • Going abroad for employment or immigration.
    • Maintenance of close relative abroad.
    • Business Travel
    • Expenses in medical treatment abroad.
    • Studied Abroad.
  • Capital A/C Transactions -
    • Opening of foreign currency account abroad.
    • Purchase of property abroad.
    • Making investment abroad.
    • Setting up wholly owned subsidiaries and joint venture abroad.


  •  No loan for capital a/c transaction by bank but for current a/c transaction loan can be given.

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