Equity Linked Saving Schemes (ELSS) are popular tax-saving mutual fund instruments that provide investors with the dual benefit of tax deduction under Section 80C of the Income Tax Act, 1961 and potential long-term capital appreciation. This study aims to conduct a comparative analysis of selected ELSS mutual fund schemes to evaluate their performance in terms of risk and return. The analysis is based on secondary data collected from reliable sources such as AMFI, NSE, BSE, and financial websites. Various performance evaluation tools including Average Return, Standard Deviation, Beta, Sharpe Ratio, Treynor Ratio, and Jensen?s Alpha were used to assess the efficiency of the selected schemes. The findings reveal variations in performance among the schemes, indicating that some funds provide higher returns with increased risk, while others offer stable risk-adjusted returns. The study concludes that ELSS mutual funds are suitable for investors seeking tax benefits along with long-term wealth creation, provided the investment choice aligns with the investor?s risk appetite.
Gottumukkala Nitish Varma (Tue,) studied this question.