ELSS Mutual Fund Investing in mutual funds can provide large returns. Mutual funds are divided into several categories, including multi -cap, mid cap, small cap, large cap, focused, themetic and ELSS. Many investors are not aware of many of these categories. Equity Linked Savings Scheme is a popular mutual fund. If you invest in it, you get tax exemption under Section 80C of Income Tax. This means that investors can claim tax deduction of up to Rs 1.5 lakh in every financial year. Like most investments, ELSS funds have a lock-in period. What is ELSS lock-in period and how does it work? Let's know if you can withdraw money from ELSS after 3 years.

Lock-in period of ELSS investments
In the case of ELSS funds, the lock-in period is usually three years. The ELSS lock-in period is smaller than other tax savings options (Section 80C). Investment options are given with details of lock-in period below. The lock-in period gives investors the opportunity to invest for a long time. This also helps fund managers to manage fund portfolio better without worrying about repeated payment.

How does ELSS lock-in period work?
As an investor, you buy units of ELSS Fund, with a lock-in period and not a full fund. At the end of a three-year lock-in period, you have the option to withdraw money or reorganize. ELSS Fund – There are two options for one -time investment and SIP investment. In one-time investment, you can invest outright amount in ELSS funds but note that ELSS's lock-in period starts from the date of investment. In such a situation, the withdrawal of unit redemption or investment amount is not allowed during a three-year lock-in period. After the completion of a three-year lock-in period, the investor can withdraw some part of the amount of deposit or the entire amount. On the other hand, ELSS also has a small investment option through SIP. If you decide to invest in ELSS by SIP, the lock period should be understood. In this, the SIP installment has its own lock-in period, which starts from the date of the investment. If withdrawal is not allowed during the lock-in period, investors can withdraw investment from that unit after the completion of a three-year lock-in period.

Do you want to withdraw money after three years?
The lock-in period for ELSS Fund is three years from your investment date. If you invest in ELSS via SIP, the lock-in period is different for each installment. In such a situation, money can be withdrawn after three years from the date of depositing the premium. The lock-in period encourages long-term investment, allowing investors to avail market growth and take advantage of tax exemption. After the lock-in period ends, you have some options. First, pay attention to the performance of the ELSS funds and if the returns are good, there are advantages to continue.