I have been investing ₹5,000 every month in Axis Long Term Equity Fund ₹5,000 through a Systematic Investment Plan (SIP) since September 2014. I do not need this investment for tax saving purpose anymore. Can I exit from it or lock-in period will apply? Please guide.
- Sualeh Khan
Axis Long Term Equity Fund is an Equity Linked Savings Scheme (ELSS) or a tax planning mutual fund scheme. Investments in it qualify for a tax deduction of up to ₹1.5 lakh under Section 80C of the Income Tax Act. If you do not need to invest in the scheme to save taxes anymore, you can stop the SIP immediately. However, you can sell your investments in ELSS only after the completion of the mandatory lock-in period of three years. All tax savings options, including ELSS, come with a mandatory lock-in period.