December 28, 2010 8:50 pm
Is it possible to redeem all units in ELSS fund after the completion of 3years?
i add my experience about the redemption of elss due to some policy approved ,and some due to our not knowing the effects of our selection:
1. say you have most appreciated sip in any plan including elss. at time of investing , you can invest a small a/m of Rs.500/-, but while redeeming even on completion of lock in period for elss , or for your want/need , you can’t withdraw less than Rs.5000/- or 50 units.(knowledgable may correct them if wrong !)
2. for not understanding implication, selection of dividend reinvestment option in elss will lead you to attach the elss fund for infinite time (i may be exagerating!) even if you want to get rid of tha fund because of its performance, because units out of dividends got reinvested automatically for 3 years each and every time of dividend!
3. if you have dividend payment option and if your dividend is less than some fixed a/m, i think Rs.250/- or so, it would be not paid, but automatically reinvested and if the fund is elss for 3 years! guess what would be the future of dividend on that small a/m on new dividend declaration after a year or so!
Yes you can redeem all units if the option is Growth or Dividend.
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