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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Comparison of Products Across Categories

Ms. Kapoor, aged 35, wants to compare ELSS funds, PPF and a 5-year tax-saving bank FD under Section 80C (old regime). Which statement correctly describes the lock-in periods?

ELSS has a 3-year lock-in, PPF a 15-year maturity period, and tax-saving bank FDs a 5-year lock-in. ELSS therefore has the shortest lock-in among Section 80C options compared, which matters for clients who value earlier access to funds.

  1. AELSS 3 years, PPF 15 years, tax-saving FD 5 yearsCorrect
  2. BELSS 5 years, PPF 15 years, tax-saving FD 3 years
  3. CELSS 3 years, PPF 5 years, tax-saving FD 5 years
  4. DELSS 5 years, PPF 10 years, tax-saving FD 3 years

Explanation

ELSS has a 3-year lock-in from each investment, PPF has a 15-year tenure (with partial withdrawals after the 6th year), and tax-saving FDs have a 5-year lock-in. Other options swap or misstate these periods.

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