Now Reading: ELSS SIP units unlock separately after three-year lock-in
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ELSS SIP units unlock separately after three-year lock-in
Each instalment in an Equity Linked Savings Scheme SIP has its own three-year lock-in, Livemint reports. An investor cannot redeem the full investment after three years from starting the SIP. Units bought…
The Story in Brief
Each instalment in an Equity Linked Savings Scheme SIP has its own three-year lock-in, Livemint reports. An investor cannot redeem the full investment after three years from starting the SIP. Units bought in August 2023, for instance, become eligible in August 2026, while later instalments unlock in their respective months.
The lock-in cannot be ended by paying an exit load and applies even during financial emergencies. ELSS can qualify for Section 80C deductions up to the overall Rs 1.5 lakh limit under the old tax regime. Each instalment counts in the financial year it is invested, not when it becomes redeemable. Analysts cited by Livemint say SIP or lump sum choices should reflect cash flow, discipline and tax needs.
The Indian Opinion
The lazy claim that an ELSS SIP is simply unavailable for three years, or that investors can pay a fee to exit, is wrong. The practical issue is timing: each monthly purchase creates a separate unlock date. Another one-sided pitch is that ELSS is always the best tax-saving fund. That depends on using the old tax regime and needing Section 80C relief. Investors should track instalment dates and first check which tax regime they use.
Source: livemint.com
This story was synthesised by AI from the source linked above.
