What happens to mutual funds after locking 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. The redemption is based on the units invested. There are tax saver mutual funds that are available with a minimum of three years lock-in period.
Can ELSS be extended?
You cannot invest for more than 15 years. However, you can extend to 5 more years. ELSS investments have no upper time limits.
Can I close my ELSS before 3 years?
Can ELSS be Withdrawn Within 3 years?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.
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?
Can I withdraw my ELSS funds before the completion of lock-in?
Under ELSS schemes, premature withdrawal is not allowed before the completion of lock-in period. As mentioned ELSS funds cannot be withdrawn before a lock-in period of 3 years, therefore the option of premature withdrawal is not available to the investor, thereby no penalty is possible in this case. ELSS investments are locked-in for 3 years.
Do I have to redeem my units once my ELSS lock-in period is completed?
Q1. Do I HAVE to redeem my units once my ELSS lock-in period is completed? It is not mandatory to redeem your ELSS units once the lock-in period is over. You can choose to redeem or stay invested based on the performance of the fund.
What is the lock-in period for ELSS funds under Section 80C?
Many investments come with a lock-in period. This is the period when you are not allowed to sell the investment. Usually, it is some months/years from the date of purchase. In the case of ELSS funds, the lock-in period is three years. If we compare this to the other investments under Section 80C, ELSS funds have the lowest lock-in period: