Abstract

In India the mutual fund industry provides tax savings schemes to the investors with dual objects by providing tax exemption and capital appreciation. There are thirty five tax saving mutual fund schemes in India run by different mutual fund companies for those investors who wants to beat inflation through superior return. This study aims to examine the performance of tax saving mutual fund schemes on the basis of risk and return and also to measure the return with its relative benchmark i.e. S&P BSE 200. Out of thirty five Tax saving schemes, twenty two scheme’s NAVs data have been taken for the period of five years from April, 2015 to March, 2020. In order to assess the performance, various statistical tools have taken such as Returns, Standard deviation, Beta, Sharpe ratio, Treynor Ratio and Jensen ratio. The findings of the study states that as compared to the market average, 36% schemes earned better return, 68% schemes were more risky, 27% schemes performed well in terms of Sharpe Ratio, 82% schemes performed well in terms of Treynor Ratio and 50% schemes performed well in terms of Jensen Measure in the study period.

Description