Are there any restrictions on withdrawing ELSS investments?

Yes, Equity Linked Savings Schemes (ELSS) come with a compulsory lock-in period of 3 years. Investors cannot redeem or withdraw their ELSS investment before completion of 3 years from the date of unit allotment. This restriction applies to both partial and full withdrawals.

If an investor needs to withdraw ELSS units during the lock-in period due to an emergency, the only option is to pledge the units to avail a loan. The units will continue to remain locked-in, and the investor will have to repay the loan amount with interest to reclaim the units.

However, after 3 years from the date of allotment, investors have the flexibility to redeem the units without any restrictions.