When can I redeem Magnum Tax Gain fund

POSTED BY Mohan Kishor ON March 5, 2011 1:17 pm COMMENTS (4)

I started investing in SBI Magnum tax gain (D) for tax saving in the year 2006. I was purchasing units on lumpsum every year till last year 2010.

Can I redeem the units that are allocated in the years 2006 and 2007 as the required lock in period of 3 years is over  for those two years investment? Is is First in First out treatment only for redeeming these ELSS units? Please clarify.

Or putting my question like this…how to calculate the 3-year lock in period and when can we redeem ELSS funds??

And also please suggest another good ELSS fund, as I feel SBI Magnum tax gain is not performing well. I want to redeem these units and invest in another ELSS now.


4 replies on this article “When can I redeem Magnum Tax Gain fund”

  1. Ajay says:

    Mohan – each invested amount has a lock in of 3 years.
    e.g. suppose you invested on March 1st of 2006, 2007, 2008, 2009 and 2010 then as of today you can redeem the investments done in 2006, 2007, 2008.

  2. Mohan

    Each payment in ELSS Is locked in for next 3 yrs . So if you invested in Jan 2006 , that particular SIP payment will be free to redeem only in Jan 2009 . and then you can redeem it , yes as told by you , its First in first out .

    I think you can move from SBI magnum to HDFC tax saver .

    Manish

    1. Mohan Kishor says:

      Thanks Manish for your reply.

      my doubt is that if I invested in Jan 2006, then is the 3-year lock-in counts from the date of investment or from the next financial year? that means can i redeem in Jan 2009 or April 2009? please clarify.
      actually my worry is not for the exit load. I showed this investment for tax exemption. I hope there will not any objection as per the Tax laws also. pls clarify.

      1. Mohan

        Its exaclty 3 yrs or 36 months ,so jan 2006 will be free in Feb 2009

        Manish

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