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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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Final Accounts

Final Accounts are the financial statements those are created at the end of the year to measure the health of the business. It represents the current financial status of the business. It is created in the form of journal and ledger. 
Important Financial Statements are as below
1. Profit and Loss Account - Expenditure and Income Statement of the particular Period

2. Balance Sheet - Statement of Assets & Liabilities as on particular date

3. Fund Flow Statement - Change in Asset and  Liability position between two account periods

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