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Exiting An ELSS

You can exit a tax-saving fund once your investments have completed the three-year lock-in period…

I invested in Rs 50,000 in Kotak Tax Saver in January 2008. When can I withdraw my investments in this fund for maximum benefit?- Ashish Suthar

Kotak Tax Saver is a tax planning fund which has a three-year lock-in in which investments up to Rs 1 lakh qualify for tax deductions under Section 80C. Your investments have completed the stipulated lock-in and can be redeemed anytime but there is no way that you can time the exit from this fund to earn maximum gains, because the NAV of the fund varies with time. You should exit the fund if you need the money or have a better investment to make or find the fund’s performance to be deteriorating consistently to look at better investment opportunities.



This article was originally published on August 10, 2011.

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