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A Study on Tax Saving Scheme on SBI Mutual Funds

Under the guidance of Mrs.S.A.Aasha jyothi, MBA, Asst. professor, Dept. of MBA.

External guidance of Mr.K.TIMMA REDDY, Branch manager in SBI.

Presented by:

D.D.Yatheesha (14BF1E0040)

SCOPE OF THE STUDY

My study is confined to only Tax saving scheme in SBI Mutual funds.

The study will also helpful to predict the performance of the selected TAX saving schemes in future.

Considers performance evaluation of tax saving scheme based on measures-beta, Sharpe and Jensen.

RESEARCH METHODOLOGY This report is based on primary as well as

secondary data .One of the most important use of research methodology is that it helps in identifying the problem , collecting , analyzing the data and providing an alternative solution to the problem.

The research has been done by the primary data by interacting with various people. The secondary data has been collected through various websites.

Limitations

• The study is confined to data available from fact sheets and websites.

• There is less period of time to analyze the future performance of Tax saving scheme.

• Micro level data have been considered for analyzing the facts.

Tools for performance measures• Average mean• Standard Deviation• Beta• Treynor’s Ratio

Data Analysis

PERIOD RETURNS RANK

1month -0.2 823month 14.3 686month -2.1 731yr -4.4 692yr 11.7 483yr 17.6 345yr 13.4 14

Returns (NAV as on 26-May-2016)

Absolute Returns (in%)Year Qtr1 Qtr2 Qtr3 Qtr4 Annual

2016 -5.4 - - - -

2015 6.6 -0.7 -4.1 -0.6 3.0

2014 7.8 20.8 7.9 5.7 49.2

2013 -7.3 2.1 -2.3 13.1 6.2

2012 16.9 -1.1 8.8 3.6 34.1

2011 -8.4 -3.3 -9.2 -6.9 -23.8

YEAR MEAN VARIANCE STANDARD DEVIATION

2011 -2.74642 25.77367 5.076778

2012 2.223219 17.79156 4.218005

2013 0.081527 16.95202 4.117283

2014 3.179444 11.96314 3.458777

2015 -0.13839 12.54099 3.541326

Interpretation By comparing the periodical returns(R) with

Benchmark returns, we get beta value. Through beta value, we can decide how much risk involved in the selected plan/scheme.

Based on the above facts and figures, we can easily analyze:

• Performance of the scheme.• Risk and Returns involved.

Findings• Investment in ELSS-Axis long term equity scheme is

best compared to SBI mutual fund Tax saving scheme.

• Major funds are allocated to Banking& Finance.• The performance of ELSS in SBIMF compared with

S&P BSE100 is below average as per CRISIL ratings (as on 31-Mar-2016)

Suggestions• SBI Tax Gain fund is having high risk, so investors

are cautioned about investing in this to earn high returns.

• SBI tax gain has to be revised the portfolio to increase fund returns and provide to the investors a more secure investment option along with tax saving.

• It should take more efforts on spreading awareness about taxing mutual funds as these investment instruments provides a higher return with tax saving

Bibliography• www.sbimf.com • www.nseindia.com • www.economictimes.com• www.moneycontrol.com• www.valueresearch.com• www.investopedia.com

THANK YOU