A Comparative Study on Performance Evaluation of Selected Mutual Fund Tax Saving Schemes

Abstract

With the emergence of the capital market, the Indian capital market also witnessed a significant institutional development in the form of a diversified structure of mutual funds. Mutual Funds have become a widely popular and effective way for investors to participate in financial markets. In present market trend, Mutual Fund is one of the revolutionary investment alternatives. In present economic liberalization scenario investors with their huge surplus funds, needs highly diversifiable instrument alternative for moderate returns with low risk, with this the Mutual Fund got significance in Indian capital market. Mutual Fund is a productive package for an investor with limited finances.Tax saving scheme is among the popular mutual fund schemes which has been attracting investors toward them. Thus, it is relevant from the view point of the investors to know the performance of the various tax saving schemes of mutual funds. In this present study an attempt has been made to find out the performance of various tax saving mutual fund offer by various mutual fund companies. Tax saving Mutual Fund schemes is one of the important constituents of Mutual Fund Companies and it has been gaining demand rapidly due to its tax advantages. In this project the performance evaluation of some of the Indian tax saving mutual fund is carried out through relative performance index, such as Treynor Ratio, Sharpes ratio etc. The present work will also give an idea to the investors as a financial advisor regarding investment in mutual fund schemes.