Canpep '93 will offer its units at an NAV-related price. The fund is the best performing tax planning scheme in the Canbank stable. Launched in 1993, the scheme has a current corpus of Rs 14.35 crore with a net asset value of Rs 13.56. The scheme has posted a one-year return of 31.35 per cent.Canpep '93 has paid three dividends so far. For financial year 1993-94, the scheme paid a 15 per cent dividend while it has paid two dividends of12.5 per cent each in 1994-95 and 1995-96. The scheme opened for repurchase of units in 1996.

``Technically, ELSS are also open-end schemes and if they are also exempted from dividend tax, it will make these schemes all the more attractive. Currently, a number of tax planners like those from First India, Birla and Alliance have very high NAVs. Thus, a dvidend payout coupled with benefits under section 88 and capital appreciation makes these schemes an excellent investment,'' said an analyst. ``On redemption, investments in these schemes will now attract a lower capital gains tax although a clarification is awaited on indexation benefits,'' he added.

So far, only two AMCs have decided to convert their ELSS into open-end funds while others plans to offer new schemes. ``Some of these funds have very high NAVs and the general perception is that investors may not be willing to invest at such high levels,'' said a fund manager.

Canbank currently manages five ELSS. The NAVs of Canpep 1991 and 1992 are abovepar whiel that of Canpep 1994 and 1994 are below par. The total corpus of the five schemes is over Rs 290 crore.