What is ELSS fund lock-in period?

What is ELSS fund lock-in period?

All ELSS mutual funds come with a mandatory lock-in period of three years. You cannot withdraw your ELSS investment within the three years from the date of investment.

What is 3 year lock in period?

The lock-in period in mutual funds means the investor cannot redeem the units before completing a predetermined period from the date of investment. There are tax saver mutual funds that are available with a minimum of three years lock-in period. Mutual funds are of two types, namely, open-ended and close-ended.

What is 3-year lock-in period?

What is the lock-in period for ELSS funds?

During the lock-in period, the investor can neither redeem nor transfer his or her ELSS investment. At the end of this lock-in period, the investor is free to either stay invested or redeem his or her units. How Does The Lock-in Period Work? The lock-in period of an ELSS fund applies to the units invested in by the investor.

How do I invest in ELSS funds?

You can choose to invest in a lump sum or instalments via a SIP. All ELSS funds have a lock-in period of three years. Once the lock-in period ends for a particular instalment/lump sum investment, the ELSS becomes an open-ended equity-oriented investment scheme with full liquidity.

How often should I review my ELSS fund?

A period of 3 years is not enough time for equities to grow to their maximum. However, it is recommended that investors perform a fund review after a period of 3 years. After a period of 3 years, investors can review their investment in the ELSS fund.

What is the lock in period for mutual fund investments?

Lock in period for mutual fund investments is not uncommon. All closed ended mutual funds have a lock-in period. Open ended mutual funds do not have a lock in period. However, there is an exception, Equity Linked Savings Scheme (ELSS) funds have a lock in period of 3 years.