Comparative Study of ELSS of Public and Private Sector of Mutual Fund Industry in India

Abstract

Indian economy in general and the mutual fund industry in particular continue to take turn around from early 1990s. Growth and development of various mutual fund products in Indian financial market has proved to be one of the catalytic instruments in generating momentous investment growth in the financial market. One common theme to alternative investments is that they are often hoped to have modest correlations with traditional investments and so to increase the diversification of investor's portfolios. The change in investment management, therefore, lies in choosing the appropriate investments and designing a unit that will meet the investment objectives of the investor subject to his constraints. Therefore the present study evaluates the performance of ten tax planning schemes (ELSS) in India over the period 2006 to 2012. This paper studies the return and risk situation in ten funds during the six years in order to judge the performance of the professional investments experts in India. Hence to examine the performance of ELSS scheme various measures like sharpe, sortino, treynor, beta, alpha and r² were used to achieve a superior risk-return tradeoff. The results indicate that the fund managers under study have been successful in reaping excess returns and there is no significant difference in performance of public and private sector but there is significant difference in performance of different years.