Can I extend ELSS?
You cannot invest for more than 15 years. However, you can extend to 5 more years. ELSS investments have no upper time limits.
Can we pause ELSS?
Yes, it is possible to stop your SIP investments in mutual funds, including your equity linked saving schemes (ELSSs). You just need to fill up the form – the procedure is the same if you have invested offline. If you have invested online, you can visit the funds’ website and cancel your SIP.
How do I redeem my ELSS before 3 years?
The simple answer is that you cannot withdraw your ELSS before the lock-in period. However, you can choose to get a loan against mutual funds (LAMF) if you want to fulfil an urgent need for funds. Many lenders allow you to keep your mutual funds as a collateral for a loan.
How do I withdraw mutual funds after locking period?
While there is a mandatory lock-in of three years, you don’t have to mandatorily redeem the units once the lock-in period is over. After the end of the lock-in period, the fund becomes a diversified, open-ended equity-oriented scheme. You can redeem the units whenever you want.
What if I cancel my ELSS before 3 years?
Equity-linked savings schemes, or ELSS funds are great option for tax saving investment plans, however, they come with a lock-in period of three years. The lock-in period are important as it helps investors secure their savings. The investors can not withdraw money before the end of lock-in period of three years.
What is the lock-in period of an ELSS mutual fund?
These funds have a lock-in period of 3 years, which means the amount you put in an ELSS mutual fund cannot be withdrawn before 3 years. Compared to other tax saving instruments, ELSS has a lower lock-in period.
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.
What happens when my ELSS lock-in period ends?
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. Q1. Do I HAVE to redeem my units once my ELSS lock-in period is completed?
What happens when the lock-in period of a mutual fund ends?
After the end of the lock-in period, the fund becomes a diversified, open-ended equity-oriented scheme. You can redeem the units whenever you want. If you have invested via a SIP, then it is important to remember that the lock-in period will be applicable based on the date of purchase of the units or the SIP date.