1. Each ELSS unit purchased gets locked-in for only 3 years from its purchase date.
2. Thereafter, the unlocked-unit can be redeemed at any time as it never gets locked-in again (unless there's a lien on it against any loans).
3. There is no maturity date of an ELSS fund, and you can remain invested in it for a longer period if you want.
4. Also, you can invest an unlimited amount, and continue to add (anytime) or redeem (anytime after lock-in) for any number of years, while continuing to avail Sec 80C tax benefits for the invested amount during a financial year within its overall specified limit of 1.5 lakh.
5. At any point of time, your total investment in a folio will be the cumulative total of lumpsum and SIP amounts, which is reflected in your folio and account statement both, as total units and total invested amount.
6. The current value of this total invested amount is also mentioned, after multiplying the total number of units by the current NAV.
7. As ELSS has 3-year lock-in period from the purchse date of each individual unit, redemption can take place only from the qualifying units mentioned in the folio on FIFO basis, and redeemed units are processed by multiplying them with NAV on that date.
8. The total amount invested in a financial year, both lumpsum and SIP, qualify for tax deduction u/s 80C within its overall limit of 1.5 lakh.
9. In all MFs, there is no taxation on its accrued value, and there is also no Short-term capital gain in ELSS funds as it has a 3-year lock-in.
10. Long-term capital gains (amount redeemed minus amount invested) on ELSS will qualify for annual tax exemption within the existing 1 lakh for all equities, besides grandfathered clause advantage wherever applicable, with 10% gains tax thereafter.
2. Thereafter, the unlocked-unit can be redeemed at any time as it never gets locked-in again (unless there's a lien on it against any loans).
3. There is no maturity date of an ELSS fund, and you can remain invested in it for a longer period if you want.
4. Also, you can invest an unlimited amount, and continue to add (anytime) or redeem (anytime after lock-in) for any number of years, while continuing to avail Sec 80C tax benefits for the invested amount during a financial year within its overall specified limit of 1.5 lakh.
5. At any point of time, your total investment in a folio will be the cumulative total of lumpsum and SIP amounts, which is reflected in your folio and account statement both, as total units and total invested amount.
6. The current value of this total invested amount is also mentioned, after multiplying the total number of units by the current NAV.
7. As ELSS has 3-year lock-in period from the purchse date of each individual unit, redemption can take place only from the qualifying units mentioned in the folio on FIFO basis, and redeemed units are processed by multiplying them with NAV on that date.
8. The total amount invested in a financial year, both lumpsum and SIP, qualify for tax deduction u/s 80C within its overall limit of 1.5 lakh.
9. In all MFs, there is no taxation on its accrued value, and there is also no Short-term capital gain in ELSS funds as it has a 3-year lock-in.
10. Long-term capital gains (amount redeemed minus amount invested) on ELSS will qualify for annual tax exemption within the existing 1 lakh for all equities, besides grandfathered clause advantage wherever applicable, with 10% gains tax thereafter.