After the government allowed mutual funds to launch open-end ELSS, there was confusion whether existing ELSS will be allowed to go open-end. ``There is absolutely no issue here as far as making closed-end ELSS open-end is concerned,'' said another fund manager.

Tata Tax Saving '96, launched in fiscal 1996, has a current corpus of Rs 14.55 crore with an NAV around Rs 12.5. As on November 30, the Tata Tax Saver has given a one-year return of 34.29 per cent. ``We have given a decent capital appreciation to our investors and once the fund goes open-end, we are hopeful of attracting fresh moolah,'' saidAtmaramani.

Currently, closed-end ELSS have a duration of 10 years with repurchase of units after 3 years. While asset management companies like Tata can make their lone tax saver open-end without any complications, it remains to be seen how AMCs with several tax savers tackle the problem. ``Managing a plethora of ELSS will be a difficult task and it makes sense to club the corpus of tax savers into one scheme,'' said the head of a mutual fund.

Currently, UTI has eight ELSS, PNBMF has five, while Kothari and JM manage four each. ``It is better if AMCs make those ELSS open-end that has performed reasonably well and let others continue till they complete ten years,'' said an analyst.

``If existing ELSS are allowed to go open-end, then investors can enter tax savers from Alliance or First India that have given very high returns. Besides, it will help AMCs save money on launch of another ELSS,'' said an analyst.