ELSS funds and the lock-in
Equity-linked savings schemes are equity funds that qualify for a tax deduction under the old regime, with a three-year lock-in on each instalment. They are the shortest lock-in among the traditional tax-saving options and the only one that is genuinely equity.
What it means
Equity-linked savings schemes are equity funds that qualify for a tax deduction under the old regime, with a three-year lock-in on each instalment.
Why it matters to a household
They are the shortest lock-in among the traditional tax-saving options and the only one that is genuinely equity.
Where it trips people up
Forgetting the lock-in applies per instalment. A monthly SIP means units unlocking on a rolling basis, not all at once after three years.
In an Indian household
The deduction only helps under the old tax regime. Under the new one, an ELSS fund is simply an equity fund with a lock-in you did not need.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
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FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
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ELSS funds and the lock-in
Equity-linked savings schemes are equity funds that qualify for a tax deduction under the old regime, with a three-year lock-in on each instalment.
Why does it matter?
They are the shortest lock-in among the traditional tax-saving options and the only one that is genuinely equity.
What do people usually get wrong?
Forgetting the lock-in applies per instalment. A monthly SIP means units unlocking on a rolling basis, not all at once after three years.
Is there anything India-specific?
The deduction only helps under the old tax regime. Under the new one, an ELSS fund is simply an equity fund with a lock-in you did not need.