The infotech fund from the AMC was launched in August this year and managed to get an initial subscription of Rs 8 crore. Since then, the fund has seen a fresh inflow of Rs 1.2 crore. The fund has a current NAV of Rs 10.10. This translates into an appreciation of 40 paise since inception (August 21) or a return of 4.12 per cent. This gives an annualised return of a little over 20 per cent.``Investments are being made in the IT sector because it has given good returns in the past and the potential to generate similar returns in the future,'' says a fund manager at a private sector AMC. ``Such kind of sector specific exposures may generate some excitement into the ELSS segment which has seen collections take a knock over the last few years,'' says an analyst. It may be pointed out that as many as five tax-saving schemes were launched in fiscal 1998 which managed a combined collection of a mere Rs 45 crore.

``Our past ELSS schemes have done well and generated good returns,'' says Prem Khatri, vice-president marketing at Kothari Pioneer. KP Taxshield '96 and KP Taxshield '97 have generated returns of 16 per cent and 20.32 per cent, respectively for the one year period ended September 30, 1998 with their NAVs at Rs 13.08 and Rs 13.76. In fact, KP Taxshield '96 will open for repurchase of units in April, 1999. The tax saving plan will give a tax rebate of 20 per cent for investments upto Rs10,000. The fund gives the option to shift to any of the 16 schemes of Kothari Pioneer at NAV . The portfolio turnover is likely to be in the range of 50-100 per cent so as to lower the transaction costs. The investment portfolio of the KP's IT fund consists of Satyam Comp, Infosys, NIIT, Mastek, BFL, Sierra Optima, Tata Infotech, Digital Equipment and Ramco.