ELSS Withdrawal Question

[KoolSIM]

Hello all,

I love this forum and cheers to its experienced members who are taking the time to guide us newbies!

I had a question about the ELSS funds. I understand that the tax-savings occurs but we have to bear with a lock-in period of 3 years.

Now suppose I open an ELSS fund with say HDFC, and invest Rs. 30,000 in it each year for the next three financial years for the sake of tax deductions. At the end of the 3rd year, can I redeem all the units I have invested so far? Or just the Rs. 30,000 that was invested at the beginning?

Thanks!

 

[drsambu123]

Hello all,

I love this forum and cheers to its experienced members who are taking the time to guide us newbies!

I had a question about the ELSS funds. I understand that the tax-savings occurs but we have to bear with a lock-in period of 3 years.

Now suppose I open an ELSS fund with say HDFC, and invest Rs. 30,000 in it each year for the next three financial years for the sake of tax deductions. At the end of the 3rd year, can I redeem all the units I have invested so far? Or just the Rs. 30,000 that was invested at the beginning?

Thanks!

Juz 30000 u can withdraw.. Each SIP requires 3 years lock in

 

[KoolSIM]

thank you for ur response!

 

[vishal412]

With the Direct Tax Code proposing elimination of Equity Linked Mutual Funds from the list of tax-saving options; mutual fund houses are doing their best to increase their AUM share under the ELSS category of mutual funds.
While considering an ELSS fund for your market-linked tax-saving portfolio, give importance to those ELSS funds that have completed at least 3 years of track record and select funds from fund houses which follow strong investment systems and processes.

Flavour of the season: ELSS