Analysis of Performance of Public Sector Indian Mutual Fund Tax Saving Schemes (A Case Study of SBI Mutual Fund)

Abstract

Each person has some financial goals for which he should have financial planning. Savings and investments are an important part of human life. Today's savings and investments will help to achieve future financial objectives. The different avenues for investments are corporate securities, Deposits in banks and non-banking companies, mutual fund schemes, Post office deposits, Government and semi-government securities etc. Some of them are marketable and liquid while others are not marketable. Some of them are highly risky while some others are almost riskless. Based on his preferences, needs and ability to take risks, the investor has to choose the right avenues from among them. UTI is the country's oldest and biggest mutual fund. Mutual funds have been set up by several commercial banks and financial institutions. Mutual funds have also been set up in the private sector. The Assets under Management (AUM) of the Indian MF Industry has grown from ₹ 7.75 trillion as on 31st October, 2009 to ₹26.33 trillion as on 31st October, 2019, about 3½ fold increase in a span of 10 years. Many of the tax payers are looking for various options to save income tax u/s 80C. Equity Linked Saving Scheme (ELSS) or tax saving funds provide tax exemption u/s 80C along with higher returns compared to any other tax saving option. Investments in ELSS up to Rs 1.5 lakh bring in tax deduction under sec 80C. Thus the fund evaluation process helps the investors to know more about the ELSS and its performance.

.

Keywords: Equity Linked Savings Scheme (ELSS), Net Asset Value (NAV), Performance, Assets under Management (AUM) and Association of Mutual Funds in India (AMFI).