Can I withdraw my money before 3 years in a tax saving ELSS mutual fund?
Can ELSS be Withdrawn Within 3 years? The simple answer to this question is No. ELSS investments do not provide the option to withdraw the investment amount before the end of the 3-year lock-in period. In ELSS, investors are given fund units against their invested amount.
Does ELSS funds have 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 the lock-in period in ELSS mutual funds?
When you invest in a ELSS mutual fund, you actually buy some units of the mutual fund and the lock-in period applies to that particular units. You can redeem those units after three years of lock-in period, irrespective of its value at the time of redemption. For example, you invested Rs 10,000 in tax saving funds in 2018.
Is it time to recycle your ELSS investments?
Some retail investors like to reinvest their money in Equity Linked Saving Schemes (ELSS) every three years to claim tax benefits under Section 80C. Despite the re-introduction of Long Term Capital Gains Tax (LTCGT), these investors are still interested in recycling their ELSS investments, say mutual fund advisors.
How often should you invest in ELSS to claim tax benefits?
Some retail investors like to reinvest their money in Equity Linked Saving Schemes (ELSS) every three years to claim tax benefits under Section 80C. Some retail investors like to reinvest their money in Equity Linked Saving Schemes (ELSS) every three years to claim tax benefits under Section 80C.
Can ELSS be redeemed before 3 years?
Start Earning Now! ELSS withdrawal: Can ELSS be redeemed 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. In fact, all tax-free investment options have lock-in period and ELSS has the shortest one.