The Alliance Tax Cover 96-A, Tata Tax Saving Scheme, Magnum Gifts-A, Kothari Pioneer Taxshield '97 and the Birla Tax Plan '98 are among the top performing schemes in the ELSS category for the one-year ended February 26, 1999.

An analysis of the universe of ELSS schemes shows that Jardine Fleming Taxsaver '96, Centurion Taxsaver '96, Kothari Taxshield '96, MTGS '93 of SBI Mutual Fund and Canpep '93 are the other five schemes who are among the top ten best performers for the one year ended February 26, 1999.

Alliance Tax Cover 96-A has given the highest return of 81.75 per cent for the one year ended February 26, 1999. During the same period, Tata Tax Savings Fund has given a return of 70.86 per cent, Magnum Gifts-A has given a return of 68.22 per cent,Kothari Taxshield '97 has given a return of 62.44 per cent and Kothari Taxshield '95 has given a return of 57.81 per cent.

The top five schemes that have generated the highest returns in the six month period (August 31 to February 26, 1999) are Magnum Gifts-A (SBI MF) at 56.32 per cent, Birla Tax Plan at 44.05, MTGS '93 (SBI MF) at 39.44 per cent, Tata Tax Savings Fund at 38.58 per cent, MELS '96 (SBI MF) at 37.77 per cent and JM Tax Cover '96-B at 34.21 per cent.

For the one month period between January 29 to February 26, 1999, the top five schemes that have generated the highest returns are JM Tax Cover 97-B at 10.74 per cent, Magnum Gifts-A (SBI MF) at 9.75 per cent, MTGS 93 (SBI MF) at 8.42 per cent, JM TaxCover 96 A at 8.31 per cent and the Ind Shelter A at 7.38 per cent.

Investments upto Rs 10,000 in Equity Linked Saving Schems (ELSS) qualify for income tax rebate under section 88(2) of the Income Tax Act 1961. Equity Linked Saving Schemes predominanatly invest in the equity markets and ususallyhave two options viz., dividend plan for unitholders desirous of regular returns and growth plans for unitholders who want capital appreciation. For instance, if you have atax liability of Rs 6,000 and you invest Rs 10,000 in an ELSS plan, you will bring donw your tax outgo by Rs 2,000 (20 per cent of Rs 10,000) to Rs 4,000.

The benefit with an open-end equity-linked savings scheme is that you can continue to maintain your investment of Rs 10,000 in an ELSS even as you redeem the appreciation in the fund after the lock-in of three years.