Dhirendra Kumar tells if it is possible to switch from dividend to growth option in ELSS
02-May-2018 •Research Desk
I have opted for the dividend option in a tax-saving fund. Can I change it to growth option? If yes, will it be treated as sale of old units and purchase of new ones?
- Prakash Chand
First and foremost, you can't do it till the lock-in period expires. The three year lock-in period is applied stringently. After three years, you are at liberty. Changing from dividend to growth will amount to redemption of old units and investing again. If you move from dividend to growth after three years in a tax-saving fund, then the new lock-in will apply once again. Although, it can well be considered as that year's tax saving investment but the three year lock-in will apply thereafter.