Statistical analysis of difference in the returns of various listed financial products over short term period

In the recent past, many investment alternatives have been introduced in the securities market in India. The investor population size has also phenomenally increased since the start of online trading and its advancement through different electronic and information technology means. The active and effective role of Securities and Exchange Board of India in infusing confidence among investor community has further provided fillip to this mode of investment. Not only the size of market and market participants has increased over a period of time but also the availability of various financial products have also been made available for trading and investment in stock markets. The investor and trader community in stock market have wide range of products ranging from stocks to exchange traded funds and market index, in the form of Nifty, for investment and trading decisions. The increase in number of available investment alternatives though led to increase in opportunity for enticing different sets of investors’ and traders’ community but requires indepth analysis of the magnitude and variability of the returns offered by these investment alternatives. The present paper has been written with a view to assess the importance of these investment alternatives from the traders and investors point of view. Various statistical and econometric test have been employed to examine statistical difference in the magnitude and variability of returns of these investment alternatives.