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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information

A Equity Linked Savings Scheme (ELSS) in India carries which of the following features?

ELSS units have a mandatory lock-in of three years from the date of allotment. For SIP investments, each instalment is locked in separately for three years from its own allotment date. The five-year lock-in applies to tax-saving bank fixed deposits, not to ELSS.

  1. AA statutory lock-in of 3 years from the date of allotment of each unitCorrect
  2. BA statutory lock-in of 5 years from the date of allotment
  3. CNo lock-in, but only units held for over a year qualify for tax benefit
  4. DA lock-in of 1 year for investments through SIP only

Explanation

ELSS units carry a lock-in of 3 years from the date of allotment. In a SIP, each instalment has its own 3-year lock-in. The 5-year lock-in belongs to tax-saver bank fixed deposits, so that option is wrong.

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