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ELSS Blues

Avoid getting into the dividend reinvestment option trap when buying tax saving funds

I bought some ELSS schemes four years ago under the dividend reinvestment option. I find myself trapped this way because though the lock-in-period of original invested units is over, the dividend re-investment is like an endless cycle. How can I get out of this trap?
- Manish Gautam

You are right with your observation of getting trapped with the dividend re-investment option in an ELSS. This is a problem that many face and there is a way to get out of it. Most fund houses allow you to switch from a dividend reinvestment option to a dividend option. For this, you need to write a letter, requesting for a change and/or fill up a “change in option” slip at the bottom of your account statement.

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