PuneinvestPuneinvest
  • Mutual Fund
  • Fixed Deposit
  • SIP Cancellation
  • Capital Gain Bond
  • Web Stories
  • Financial Planning
Reading: ELSS Fund Redemption Process
Share
Aa
PuneinvestPuneinvest
Aa
  • Mutual Fund
  • Fixed Deposit
  • SIP Cancellation
  • Capital Gain Bond
  • Web Stories
  • Financial Planning
Search
  • Mutual Fund
  • Fixed Deposit
  • SIP Cancellation
  • Capital Gain Bond
  • Web Stories
  • Financial Planning
Follow US
© Foxiz News Network. Ruby Design Company. All Rights Reserved.
Puneinvest > Blog > Mutual Fund > ELSS Fund Redemption Process
Mutual FundMF SIP

ELSS Fund Redemption Process

Last updated: 2022/04/16 at 11:46 AM
Rajendra Todkar Published April 14, 2022
Share
- Advertisement -

Tax saving ELSS fund is available with 3 years lock-in period. The lock-in period in mutual funds means the investor cannot redeem the units before completing a predetermined period from the investment date. The redemption is based on the units invested.

Contents
Lump-sum Investment redemption in ELSSSIP Investment redemption in ELSS

As mentioned above, you may redeem the ELSS only after the mandatory three-year lock-in period is complete.

There are some rules to follow for redemption:

Lump-sum Investment redemption in ELSS

Suppose you have invested in the fund in a lump sum amount.  i.e., paid the money in one single payment, then the mutual funds are allotted on the same day. Therefore, all fund units are also redeemed on the same day after the closing date.

- Advertisement -

Suppose you invest a lump sum amount of Rs. 28,500 in the ELSS scheme as of 07 Feb 2019.

For your investment, let us assume you received 676.30 units. According to the ELSS lock-in period of 3 years, you cannot redeem your units for up to three years, i.e., until 7 Feb 2022. You can redeem your units or withdraw your investment only after 7 Feb 2022.

SIP Investment redemption in ELSS

Redemption becomes different if you invest in the ELSS through a SIP (Systematic Investment Plan).  As you know, the SIP investment is usually a monthly one in small increments.

If you have a SIP earmarked for ELSS funds, then each installment of SIP is considered a new investment.

As a result, each subsequent SIP installment has its three-year lock-in period. The lock-in for each SIP is considered from the day of unit allocation when that month’s SIP is debited.

E.g., if you invest Rs. 2,000 every month from Sep 2021 to Mar 2022, a total of 7 months.

So, your investment will be as follows:

Investment DateInvested AmtUnitsFree Unit After
6 Sep 20212,00019.7976 Sep 2024
5 Oct 20212,00019.5155 Oct 2024
9 Nov 20212,00019.2749 Nov 2024
6 Dec 20212,00020.3266 Dec 2024
4 Jan 20222,00019.0834 Jan 2024
4 Feb 20222,00020.1264 Feb 2024
4 Mar 20222,00021.9654 Mar 2024

You Might Also Like

New Fund Offer: Axis Business Cycle Fund

The Time and Money You Need for 1 Crore via Mutual Fund SIP

The Key Characteristics of a Balanced Advantage Fund

Focused Fund: A Selective Approach to Generating Exceptional Returns

Passive Investing: The Power of Index Funds

Exploring the Basics of NFO: What it is and How it’s Used?

NFO – Tata Multi Cap Fund

NFO – HSBC Multi Cap Fund

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share this Article
Facebook Twitter Email Copy Link Print
Previous Article NCD Issue Muthoot Finance Ltd – Apr 2022
Next Article Infrastructure Bond Maturity update 2022
- Advertisement -

Latest Post

  • An Introduction to the Indian Stock Market: Understanding How it Works
  • New Fund Offer: Axis Business Cycle Fund
  • Stock Market Indices: Understanding Nifty, Sensex, and Other Indexes
  • The Time and Money You Need for 1 Crore via Mutual Fund SIP
  • BNPL vs Credit Cards: Which is Right for You?

Category

  • BNPL
  • Bonds
  • Calculators
  • Capital Gain Bond
  • Child Planning
  • Credit Card
  • Featured
  • Financial Planning
  • Fixed Deposit
  • Gold
  • health Insurance
  • IPO
  • MF SIP
  • Mutual Fund
  • Mutual Fund Overview
  • Mutual Fund Service
  • NCD
  • New Fund Offer
  • Post Office
  • Retirement Planning
  • Stock Market
  • Tax Free Bonds
  • Tax Saving Scheme

You Might Also Like

axis business cycle fund
Mutual FundNew Fund Offer

New Fund Offer: Axis Business Cycle Fund

February 2, 2023

The Time and Money You Need for 1 Crore via Mutual Fund SIP

January 31, 2023

The Key Characteristics of a Balanced Advantage Fund

January 26, 2023

Focused Fund: A Selective Approach to Generating Exceptional Returns

January 21, 2023

Passive Investing: The Power of Index Funds

January 18, 2023
Lens
Mutual Fund

Exploring the Basics of NFO: What it is and How it’s Used?

January 16, 2023
Tata Multi cap fund
Mutual FundNew Fund Offer

NFO – Tata Multi Cap Fund

January 15, 2023
hsbc multi
Mutual FundNew Fund Offer

NFO – HSBC Multi Cap Fund

January 13, 2023
Show More

© 2011 Puneinvest. All Rights Reserved.

  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • About Us
  • Our Services
  • Contact Us

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?