alleryStart learning →An Equity Linked Savings Scheme (ELSS) carries a mandatory lock-in period of
A3 years
B1 year
C5 years
D7 years
Answer & Solution
Correct answer: A. 3 years
1. ELSS is an equity mutual fund category with a statutory tax benefit.
2. Regulations require at least 80 percent of assets in equity and equity related instruments.
3. Every ELSS investment carries a mandatory lock-in of 3 years.
4. During the lock-in the investor cannot redeem those units.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2.4A(10)_
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