Published Jun 2, 2026 4 Min Read

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Introduction

The ELSS fund lock in period is 3 years, making it the shortest lock-in among investments eligible for deduction under Section 80C. If you invest through SIP, every instalment has its own separate 3-year lock-in period.

  • Lock-in period: 3 years from the investment date.
  • Tax deduction: Up to Rs. 1.5 lakh per financial year under Section 80C.
  • SIP instalments have separate lock-in periods.
  • ELSS funds are market-linked and managed by the respective AMC.
  • KYC is mandatory before investing as per SEBI regulations.
  • You can explore 4,000+ mutual fund schemes on the Bajaj Broking website across equity, debt, hybrid, ELSS, thematic, and other categories.

Start your mutual fund investment journey on the Bajaj Broking website, complete KYC online, explore 4,000+ schemes, and begin an SIP  from Rs. 100 per month.

What is ELSS lock-in period?

The ELSS lock-in period is the mandatory time during which you cannot redeem your investment. Every ELSS investment remains locked for 3 years from the date of purchase.

ELSS stands for Equity Linked Savings Scheme. These mutual funds invest primarily in equities and offer tax benefits under Section 80C of the Income Tax Act.

Unlike many other tax-saving investments, ELSS funds have a relatively shorter lock-in period of 3 years.

FeatureDetails
Investment typeEquity Linked Savings Scheme (ELSS)
Lock-in period3 years
Tax deductionUp to Rs. 1.5 lakh under Section 80C
ReturnsMarket-linked
RegulatorSEBI

Why is the ELSS lock in period important?

The lock-in period encourages long-term investing. Since equity markets can fluctuate in the short term, a 3-year holding period gives your investment more time to potentially grow.

The lock-in period also supports disciplined investing. It reduces the temptation to withdraw money during market volatility.

Another important benefit is tax saving. ELSS funds qualify for a deduction of up to Rs. 1.5 lakh under Section 80C with a mandatory 3-year lock-in period.

When evaluating risk, you should also check the SEBI-mandated riskometer, which categorises schemes as Low, Low to Moderate, Moderate, Moderately High, High, or Very High.

How do you calculate the ELSS lock-in period?

Calculating the ELSS lock in period calculation is simple. The process depends on whether you invest through lumpsum or SIP.

Lumpsum investment

  1. Note the investment date shown in your transaction details.
  2. Add 3 years to that date.
  3. The investment becomes eligible for redemption after completion of 3 years.

SIP investment

  1. Check the date of each SIP instalment.
  2. Add 3 years separately to every instalment date.
  3. Track each instalment individually because every SIP contribution has its own lock-in.
  4. Redeem only the units whose lock-in period has ended.

Mutual funds are subject to market risk. Please read the scheme-related documents carefully before investing.

Investment ModeLock-in Calculation
Lumpsum3 years from investment date
SIP3 years from each SIP instalment date

How do you invest in an ELSS fund?

The process is online and can usually be completed within a few minutes if your KYC is already completed.

  1. Complete KYC using your PAN and required documents.
  2. Log in to the Bajaj Broking website.
  3. Search for an ELSS mutual fund scheme.
  4. Review scheme details, riskometer, and investment objective.
  5. Choose SIP or lumpsum investment mode.
  6. Enter the investment amount and confirm the transaction.
  7. Track your holdings through the Dashboard, Portfolio, Orders, and MF Profile sections.

You can choose from more than 4,000 mutual fund schemes on the platform, with SIP investments starting from Rs. 100 per month.

Why should you invest in ELSS tax saving mutual funds?

ELSS funds combine tax savings with the potential for long-term wealth creation through equity investments.

Key reasons investors consider ELSS funds include:

  • Tax deduction of up to Rs. 1.5 lakh under Section 80C.
  • Shortest lock-in among Section 80C investment options.
  • Potential for long-term growth through equity exposure.
  • Professional fund management by the respective AMC.
  • SIP and lumpsum investment options.

Remember that returns are market-linked and not guaranteed. Past performance does not guarantee future results.

Taxation rules of ELSS funds

ELSS investments qualify for deductions under Section 80C, subject to prevailing tax laws.

Tax AspectTreatment
Section 80C benefitUp to Rs. 1.5 lakh deduction
Lock-in period3 years
ReturnsMarket-linked
RegulationSEBI-regulated mutual fund schemes

Tax rules may change over time. You should review the latest provisions before investing.

What should you do after the lock-in period ends?

Once the lock-in period ends, you can decide whether to redeem or continue holding your investment.

Your decision can depend on:

  • Financial goals.
  • Market conditions.
  • Portfolio allocation.
  • Investment horizon.
  • Tax planning needs.

Many investors continue holding ELSS units beyond the lock-in period if the scheme remains aligned with their long-term goals.

Conclusion

The ELSS mutual fund lock in period is 3 years and applies to every investment made in the scheme. For SIP investments, each instalment has its own separate 3-year lock-in period.

ELSS funds offer a combination of tax savings and equity market participation. Before investing, review the scheme objective, riskometer, and your financial goals, and ensure your KYC is completed as required by SEBI.

Frequently asked questions

Does the lock-in period apply to both lumpsum and SIP investments?

Yes. The ELSS lock in period applies to both lumpsum and SIP investments. For a lumpsum investment, the entire amount remains locked for 3 years from the investment date. For SIPs, every instalment is treated separately and carries its own 3-year lock-in period. On the Bajaj Broking website, you can invest through either mode depending on your preference.

What happens to my ELSS if I do not redeem after the lock-in period?

Your ELSS investment continues to remain invested even after the 3-year lock-in period ends. There is no requirement to redeem immediately. You can stay invested for a longer period if it aligns with your financial goals and risk appetite.

Can I withdraw my investments before the lock-in period is over?

No. ELSS funds have a mandatory 3-year lock-in period prescribed for tax-saving investments under Section 80C. You cannot redeem units before the completion of the applicable lock-in period, whether the investment was made through SIP or lumpsum.

Do ELSS funds offer any tax benefits?

Yes. ELSS funds qualify for a tax deduction of up to Rs. 1.5 lakh per financial year under Section 80C of the Income Tax Act, subject to applicable tax rules. The Bajaj Broking website allows you to explore ELSS schemes among 4,000+ mutual fund schemes available across multiple categories.

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