Can I withdraw my ELSS after 3 years?
ELSS or Equity Linked Savings Schemes are also known as tax saver Mutual Funds as investors get tax deduction benefits under Section 80C of the Income Tax Act. Due to this mandatory lock-in of 3 years, you can only redeem your ELSS investments either partially or in full after the completion of the lock-in period.
Can we switch funds in ELSS before 3 years?
Investments in ELSS regular plans have a mandatory lock-in period of 3 years. You cannot redeem or switch your ELSS investment before 3 years. This also applies to investments in ELSS funds through systematic investment plans (SIPs). You can only withdraw each installment after three years of lock-in.
What will happens to ELSS after 3 years?
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 is the lock-in period of ELSS funds?
Equity Linked Savings Scheme or ELSS funds are a great option for Tax saving. However, they come with a mandatory lock-in period of 3 years. Owing to this, investors can not withdraw money before the completion of 3 years.
How to start investing in ELSS funds?
Like all equity investments, the best way is to start investing in monthly SIPs through the year. SIP in a ELSS fund helps you to accumulate more units when the market is in red and generate exceptional returns when the markets are favourable. Read our blog on Why ELSS should be your first Mutual fund? to understand the benefits in detail. 3.
How much can I invest in ELSS under Section 80C?
Under section 80C, one can avail tax benefit of upto ₹46,800 by investing upto ₹1.5 lakhs per year in ELSS. You can also invest more than ₹1.5 lakhs in ELSS, but tax benefit can not be availed on the investment exceeding ₹1.5 lacs.
What are the advantages of ELSS mutual funds?
Here’s a look at the advantages of ELSS Mutual Funds: ELSS has the shortest lock-in period of three years. Tax-saving fixed deposits have a five-year lock-in, while PPF has a 15-year maturity. All in all, ELSS offers more liquidity in the medium term.