I had invested Rs.5 lakhs in HDFC Taxsaver Fund in Feb 2009 for investment purposes, but not to save tax, as I never take any tax rebate on my investments. Now, I want to switch my investment into HDFC MIP Long-Term. Is it possible to switch to other scheme before completion of 3 years?
-Ankur Bhargava
Equity Linked Savings Scheme (ELSS) has a compulsory lock-in period of 3-years. This means you will be unable to make a switch, until you complete the lock-in period. Moreover, if you do not intend to invest in mutual funds for the purpose of tax-savings, which otherwise is a beneficial proposition, avoid choosing ELSS funds. Instead, invest in other diversified equity fund such as HDFC Top 200, Magnum Contra, DSPBR Top 100 Equity.
This article was originally published on April 05, 2010.
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