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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CREDIT INFORMATION REPORT

 Credit Information Report or CIR is collection of past and present credit history based on PAN (Permanent Account Number) and/or AADHAR Number. It provides consolidated summary and details of all credits taken in past and repayment details of the same. It shows all credit inquiries also. It contains Name, PAN, Aadhar, all address details, Mobile Number, E-mail, any default payment, Suite filed etc also. It shows 3-digit credit score ranging between 300 and 900. 300 is worst and 900 is best credit score. Credit score shows credit worthiness of individual.

What is the Use of Credit Information Report?

Credit Information Report is the track record of taking and repaying of loans from all registered lenders for an individual. It play vital role while applying any type of loan to lenders. Lenders gives preference to those who maintain good credit score. Credit score plays important role in taking credit decisions by lenders like NBFCs, Banks etc.

Credit Information Companies

There are four major companies in India who maintains credit information details and provide consolidated details of credit history and track record of individual's borrowing and payments of the same from all financial institutions in India. These are

1.  Transunion CIBIL, Credit Information Bureau (India)  is the first credit information company in India established in August 2000. CIBIL Credit score is 3-digit number and falls between minimum 300 and maximum 900. Generally, credit score above 750 is considered as good credit score.

2.    Equifax - It is an American Multinational Consumer Credit Reporting Agency. Headquartered in Atlanta, Georgia.

3.    Experian - Headquartered in Dublin, Ireland.

4.    CRIF (The Center for Research in International Finance) High Mark Credit Information Services - RBI approved credit bureau in India. Incorporated in 2005 and based in Mumbai.


Who Regulates Credit Information Companies?

The Reserve Bank of India has enacted Credit Information Companies Regulations, 2006 ("Regulations") and the Government of India have enacted the Credit Information Companies Rules, 2006 ("Rules") for regulation and monitoring of Credit Information Companies.

What is the meaning of Credit Score -1?

Credit score -1 shows that credit information company has no record of credit history. In other therms, it means individual has not taken any loan from any registered lenders.

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