PERFORMANCE ANALYSIS OF PRIVATE AND PUBLIC SECTOR BANKS OF OPEN- ENDED TAX SAVING MUTUAL FUND SCHEMES IN INDIA

Abstract

This research study is an attempt to analyse the selected Equity Linked Savings Scheme (ELSS) Mutual Fund schemes performance to see their growth trend on the investors investments. In this research study 05 private sector banks and 05 public sector banks open ended tax saving mutual fund schemes are considered as a sample and the banks was selected based on their Corpus size. The risk-free limit adopted is 6.65%. To give increased return on investor domestic investments and enhance investment allocation in different avenues, the scope and needs of investors for mutual fund as an investment option has greatly increased. Mutual fund investment contribution mostly from Tier 1 and Tier 2 cities only whereas rural and semi-urban communities are less contrubution. One explanation for this is awareness levels in both rural and semi-urban areas are very less. So, there is a great need for awareness-raising. Findings of the study said that the Private Sector banks mutual fund schemes have recorded much better performance when compared to Public Sector banks mutual fund schemes mainly due to better allocation of funds, better management and Portfolio Manager's efficient performance. This conclusion was obtained after the ratio of Sharpe, Treynor, beta, Jensen Alpha and Appraisal ratio was measured and compared. The findings of the says that the ELSS funds have outperformed the market index in terms of average returns. Axis Long Term Equity Fund is the most reliable scheme in market. Moreover, all the funds have aggressive relationship with market except Baroda ELSS 96 (Plan-B). This Study can be expanded further by taking other specific mutual fund schemes to study how they are performing in trems of their benchmark