ETF vs index funds

Not confident about creating your own equity portfolio? Indexing could provide a workaround with the help of exchange-traded funds (ETFs) and index funds. Both types of financial instruments mirror a specific stock market index. This could include benchmark indices like Nifty and Sensex, or some other index that follows a specific group of stocks. The advantages of investing in index funds or an ETF scheme are twofold: (1) your returns are in line with those of the index and (2) the likelihood of manager risk (common in case of actively managed mutual funds) is minimised.

What are index funds?

These are mutual fund schemes in which the fund manager creates an asset portfolio that replicates the chosen index. So, fund managers of index funds do not have to think about stock selection. They must simply minimise the tracking error—that is, the extent to which the fund does not mirror the index.

What are ETFs?

An ETF represents a basket of selected assets which mirror a specific index. All ETFs are … Read More

Customer reviews unravel the road to success for a business

For any business, success becomes easier to achieve when efforts are in synchrony with the desired outcomes, for the end customers. It hence becomes of a significant bit of importance to know your customers’ genuine opinions about your service. If a business is unsure about the customers’ opinion of their services, ensuring the best possible customer service comes by as a difficulty. 

The customer reviews can hence be used in a way that your business goes on to meet customers’ requirements in the best of ways. To get started with, it is very important to let your customer be heard. A number of top companies use reviews to a fine effect. They not just keep a track of customer reviews over review sites, but also use questionnaires and surveys to have a better idea about the customer experience that they provide. It lets them stay ahead of the competition curve.

Customer feedback is important and should never be ignored, irrespective of whether the feedback is positive or negative. A … Read More