How ELSS lock-in works? Common misconceptions

Common misconceptions among new investors when it comes to ELSS. If you're not familiar with ELSS, it's a type of mutual fund that offers tax benefits under Section 80C of the Income Tax Act, 1961 in India. ELSS investments come with a lock-in period of three years, which means that you can't withdraw your money before that time.

Misconception 1 : Many people think that all investments made within three years of ELSS lock-in period are withdrawable by the end of that period. However, this is not the case. The lock-in period applies to each investment individually, not to the entire corpus. So, if you make multiple investments in ELSS over a period of three years, each investment will have its own lock-in period of three years from the date of investment. That means you can't withdraw any of your investments before their respective lock-in periods are over.

Misconception 2 : Some investors believe that it is required to invest in ELSS every month for three years. But this is not true either. You can invest in ELSS whenever you want, as long as you meet the minimum investment amount required by the fund. The lock-in period will start from the date of each individual investment, not from the date of the first investment. So, if you make a lump-sum investment in ELSS, the lock-in period will apply to that investment alone.

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[srivathsjayanchandrasekara]

Small correction bro, in the first part of the video you said that we can redeem the invested ₹1000 after 3 years

But it is not the amount that can be redeemed, it the number of units that was allocated for the amount that we invested 3 years before

[karthik_abd_videos]

True, ELSS allow redeemable unit option to redeem fund after 3years. Which we invested 3 years back.

[sanjanass]

Then how profit works in ELSS can you show how it’s works with example

[YuvarajUV]

Appo 6 year aguma, antha 3 year sip panna unit vanga

[Rightness_]

Enum konjam detailed explain panunga brp

[Lenin_doss]

bro. considering the new tax regime, do you think popularity or investment of ELSS (as tax saving ) will go down in coming years. ?

[sathish]

This vedio is very useful and shocking,
Because, I have started to invest in mirae asset tax server fund for opt tax exception and retairment since Jan 2019. I thought to sell all units during the retairment once the lock-in period is completed and now I understood that it won't workout. So I' m requesting you to suggest some fund which will give return 12 to 14 percent anual return.

[nooberzgaming]

Then what about Zerodha large midcap 250 ELSS bro?

[Kamesh_]

How to invest in ELSS in through zerodha?

[jagadeeswaranmahalakshmi]

Six year kalichi edutha profit eppadi excess 3years ku kudu paangala

[karthikv]

Stock pathi epdi bro Analysis panrathu..

[chinmaianandh.p]

Brother Before that What is ELSS Investment?

[elangovanmani]

I need withdrawal elss fund with in 3 years any possible option I thare.

[seshanthanmurali]

Bro apo 3 years ku aprom money need irundhalum eduka mudiyadha

[kuruvirottie]

ELSS how much time period of maturity?

[fazilahamed]

Bro, exactly i faced this problem two weeks ago....😅

[SwtVenkat]

Bro... Quant Active fund la monthly 1000 rupees, invest pannitu irukan, last six month ya... atha continue pannalama ila stop pannitu, index fund la continue pannikalama... bro... plz help me bro

[pothiragu]

Ippo na elss tax saver moolama sip la invest panren itha 15 varusam sendu edukku pothu ennala 12 varusathukku ulla amount mattum tha edukka mudiyum apdi thane sago

[Ranjithkumar-vkdu]

My elss amount now 3 lakhs nov 2024 is the lockin period completion .when can I withdraw the full amount ..

[anishkumarb]

Can you explain what happens when we break within 3yrs?