Are there any restrictions on withdrawing ELSS investments?
- Posted:4th February, 2025
- Updated:4th February, 2025
Yes, Equity Linked Savings Schemes (ELSS) come with a compulsory lock-in period of 3 years. Investors cannot redeem or withdraw their ELSS investment before completion of 3 years from the date of unit allotment. This restriction applies to both partial and full withdrawals.
If an investor needs to withdraw ELSS units during the lock-in period due to an emergency, the only option is to pledge the units to avail a loan. The units will continue to remain locked-in, and the investor will have to repay the loan amount with interest to reclaim the units.
However, after 3 years from the date of allotment, investors have the flexibility to redeem the units without any restrictions.
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