Can I withdraw ELSS SIP after 3 years?
If you have made your ELSS Mutual Fund investment via the lump sum route, i.e., at one go, all your units will be allotted on the same day. And therefore, once the 3 year lock-in period is over, you can redeem your entire ELSS investment in one go.
Can we stop SIP in ELSS?
You may cancel SIP even if you have invested through a mutual fund distributor. It helps if you inform your mutual fund agent who fills up the cancellation request for the SIP with the respective AMC.
Can I continue ELSS fund after 3 years?
The lock-in period of lump-sum investment ends after the end of three years from the investment date. For example, One can redeem the 60 units (NAV Rs. 500 and Rs. 30,000 invested on 1st Mar 2017) of mutual funds after 1st March 2020.
When can I withdraw my ELSS SIP?
Yes, since the ELSS investment has completed five years, you can withdraw the first year’s investment and re-invest it. Long term capital gains tax would be applicable for capital gains of more than Rs 1 lakh in a financial year.
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 is the lock-in period in an ELSS fund?
The lock-in period in an ELSS fund applies to the units of the fund purchased by you. You can withdraw your investments when these units complete three years of staying invested. Let’s look at how this works with the help of an example:
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.
How does 3 yrs ELSS lock-in work?
As the investment is made in an ELSS fund, your 1000 units are locked-in for three years. You can redeem them on 1st December 2020 and any date after that. How Does 3 Yrs ELSS Lock-in Work in Case of SIP?