Optimization: Journal of Research in Management

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Performance Analysis of Different Asset Class in India


Affiliations
1 Finance and Managerial Accounting, Universitas Nusantara PGRI Kediri, Jalan K.H. Achmad Dahlan 76, Kediri, East Java, Indonesia
2 HDFC Asset Management Company Ltd, Dehradun, Uttrakhand, India
     

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Investment is a way of investing the funds in different asset class available such as equity, debt, bonds, fixed deposits, real estate, gold etc. Each asset class has different risk return trade off. This study compares historical returns of different asset class namely Nifty 50, Sensex 30, Equity Mutual fund, Debt Mutual fund, Gold and Real Estate for 10 years horizon i.e 2007-2016. It also takes 20 years data for Nifty 50,Sensex 30 and goldi.efrom 1997- 2016 and compares the returns over the years. Further, itdiscusses the impact of recent change in the Indian Financial Budget relating to Long Term Capital Gain Tax (LTCG) over Real Estate investor’s returns. This study shows that Debt Mutual fund has given better returns as compared to other asset classes for shorter period of time i.e. for one year period. However, for long term investors,equity mutual funds have performed consistently better as compared to other asset class.This study also reveals that change in budget relating to LTCG holding period for immovable property has made the real asset investment class more attractive for wealthy investors.

Keywords

Mutual Fund, Net Asset Value, Long Term Capital Gain, Stock Index, CAGR.
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  • Performance Analysis of Different Asset Class in India

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Authors

Subagyo
Finance and Managerial Accounting, Universitas Nusantara PGRI Kediri, Jalan K.H. Achmad Dahlan 76, Kediri, East Java, Indonesia
Kanchan Bisht
HDFC Asset Management Company Ltd, Dehradun, Uttrakhand, India

Abstract


Investment is a way of investing the funds in different asset class available such as equity, debt, bonds, fixed deposits, real estate, gold etc. Each asset class has different risk return trade off. This study compares historical returns of different asset class namely Nifty 50, Sensex 30, Equity Mutual fund, Debt Mutual fund, Gold and Real Estate for 10 years horizon i.e 2007-2016. It also takes 20 years data for Nifty 50,Sensex 30 and goldi.efrom 1997- 2016 and compares the returns over the years. Further, itdiscusses the impact of recent change in the Indian Financial Budget relating to Long Term Capital Gain Tax (LTCG) over Real Estate investor’s returns. This study shows that Debt Mutual fund has given better returns as compared to other asset classes for shorter period of time i.e. for one year period. However, for long term investors,equity mutual funds have performed consistently better as compared to other asset class.This study also reveals that change in budget relating to LTCG holding period for immovable property has made the real asset investment class more attractive for wealthy investors.

Keywords


Mutual Fund, Net Asset Value, Long Term Capital Gain, Stock Index, CAGR.

References