Doing monthly SIP in ELSS fund for last three years? Here's why you can't redeem your entire investment today
New Delhi, Aug. 6 -- If you have been investing in an Equity Linked Savings Scheme (ELSS) through a monthly Systematic Investment Plan (SIP) for the last three years, you still can't redeem your entire investment today. This is one of the basic rules that many investors are unaware of.
As per SEBI rules, ELSS funds are required to invest at least 80% of their assets in stocks. But unlike other mutual funds, they are subject to a mandatory three-year lock-in period.
Here's what experts have to say about how ELSS redemptions work.
"Many investors believe the three-year lock-in is calculated from the start date of the SIP. However, in reality, each SIP instalment is subject to a separate three-year lock-in period," Gibin John, Senior Inve...
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