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Today I was just wondering how should I plan to save the tax I pay. One of the so called experts suggested that you should go for equity tax funds. I was wondering what does they mean. Ok! fine .. lets try was my answer.

There is a lot of technical jargon surrounding those. Some one has suggested you see the name of fund manger in addition to fund name .. some suggested to check the past performance .. which again is a question mark. considering the risk disclosure statement - past performance may not be sustained in future ...

Then I happened to see the full portfolio of what each fund holds. Ironically, I find that most of the funds hold similar stocks.. to be more precise stocks with huge market capitalisation comprise their portfolio. As is self explanatory, some of them are also not growing as expected. For Gods sake,, rumours and speculations rule the roost. India is never devoid of talent and there are many great fund managers in India, some of them are experts at the field of investing.

What lacks is the diversity. There are very few options if we dig deeper into this ELSS business. If any financial intellectual is reading this, I have only one question. Is there any ELSS fund where investor can pick his share of allotment to stocks - large mid small cap and money market.

May be it is time for Indian Industry to come up with a balanced ELSS fund where good share of money is invested in money markets and part of it can be kept as cash/call.