The effect created by the instigation of LTCG on ELSS Schemes: A Case of India

This paper analyzes the movement of Net Asset Value (NAV) of equitylinked savings schemes (ELSS) due to the announcement of longterm capital gain (LTCG) tax during the presentation of union budget 2018 in India. A shortterm event study is used to understand the impact of the stock market movement of the ELSS schemes and Cumulative average abnormal return on the investors, therefore the event window has been created to provide an explorative event study with both pre and post analysis. We examined the influence on a sample of 104 ELSS Schemes. The results reveal that the market sentiments are jeopardized and the ELSS scheme are showing adverse propensity towards the introduction of LTCG.