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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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Rate Summary as per Policy Announcement on 9th Oct 2020



 1. Repo Rate - 

There is no change. Repo Rate is the fixed interest rate at which the RBI provides overnight liquidity to banks against the collateral of government and other approved securities under the Liquidity Adjustment Facility (LAF). Current Repo Rate is 4%.


2. Reverse Repo Rate - 

There is no change in Reverse Repo Rate too. The Reverse Repo Rate is the fixed interest rate at which the RBI absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the Liquidity Adjustment Facility (LAF). Current Reverse Repo Rate is 3.35%.


3. Marginal Standing Facility (MSF) - 

There is no change in the Marginal Standing Facility (MSF) rate. The MSF or Marginal Standing Facility (MSF) Rate is the rate at which RBI lends funds overnight to scheduled banks against government securities. Current MSF Rate is 4.25%.


4. Bank Rate - 

There is no change in Bank Rate too. Bank rate is the rate at which the Reserve Bank of India (RBI) provides the loan to commercial banks without any security. Current Bank Rate is 4.25%

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