How to Redeem ELSS SIP?

Redeeming Equity Linked Savings Scheme SIPs require a clear understanding of the process and timing involved. ELSS SIPs offer tax benefits and potential long-term wealth accumulation, making them popular investment choices. However, knowing how to redeem ELSS SIPs efficiently is important for investors to access their funds when needed.

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SIP Plan Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax
Zero LTCG Tax
Disciplined & worry-free investing
Disciplined & worry-free investing

Payment Mode
Invest
₹ 10,000
Invest for
AUM (Cr)

₹10,554

NAV

114.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 28.6 21.1 17.8 %

Instant tax receipt
AUM (Cr)

₹2,693

NAV

71.67

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.95 15.68 15.53 %

Instant tax receipt
AUM (Cr)

₹3,282

NAV

70.19

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.99 16.04 15.13 %

Instant tax receipt
AUM (Cr)

₹5,681

NAV

80.91

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.38 12.4 14.97 %

Instant tax receipt
AUM (Cr)

₹36,935

NAV

76.38

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.72 14.49 14.67 %

Instant tax receipt
AUM (Cr)

₹433

NAV

67.94

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.79 13.24 14.52 %

Instant tax receipt
AUM (Cr)

₹4,390

NAV

68.06

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.68 14.47 14.42 %

Instant tax receipt
AUM (Cr)

₹3,552

NAV

41.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.79 12.99 14.23 %

Instant tax receipt
AUM (Cr)

₹7,241

NAV

154.47

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.82 13.2 14.01 %

Instant tax receipt
AUM (Cr)

₹235

NAV

49.42

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.36 14.6 13.98 %

Instant tax receipt
AUM (Cr)

₹2,693

NAV

71.67

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.95 15.68 15.53 %

AUM (Cr)

₹3,282

NAV

70.19

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.99 16.04 15.13 %

AUM (Cr)

₹433

NAV

67.94

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.79 13.24 14.52 %

AUM (Cr)

₹4,390

NAV

68.06

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.68 14.47 14.42 %

AUM (Cr)

₹3,552

NAV

41.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.79 12.99 14.23 %

AUM (Cr)

₹7,241

NAV

154.47

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.82 13.2 14.01 %

AUM (Cr)

₹235

NAV

49.42

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.36 14.6 13.98 %

AUM (Cr)

₹104

NAV

54.94

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.95 14.01 13.64 %

AUM (Cr)

₹13,106

NAV

81.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.04 12.44 13.2 %

AUM (Cr)

₹2,130

NAV

65.64

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.11 12.07 12.87 %

AUM (Cr)

₹10,554

NAV

114.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 28.6 21.1 17.8 %

AUM (Cr)

₹5,681

NAV

80.91

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.38 12.4 14.97 %

AUM (Cr)

₹36,935

NAV

76.38

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.72 14.49 14.67 %

AUM (Cr)

₹2,211

NAV

62.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 26.65 20.83 20.1 %

AUM (Cr)

₹1,021

NAV

72.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.89 14.16 14.9 %

AUM (Cr)

₹13,589

NAV

68.37

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.77 13.18 13.45 %

AUM (Cr)

₹3,406

NAV

59.13

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.06 13 12.83 %

AUM (Cr)

₹1,125

NAV

52.57

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.82 12.32 12.59 %

AUM (Cr)

₹528

NAV

57.06

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.17 11.46 11.73 %

AUM (Cr)

₹215

NAV

94.32

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 7.86 8.31 8.51 %

AUM (Cr)

₹831

NAV

40.54

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.98 7.89 7.69 %

AUM (Cr)

₹488

NAV

38.24

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.67 7.93 7.51 %

AUM (Cr)

₹123

NAV

29.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.02 7.04 7.19 %

AUM (Cr)

₹71

NAV

40.75

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.44 7.32 7.18 %

AUM (Cr)

₹198

NAV

46.83

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 4.89 7.35 7.11 %

AUM (Cr)

₹19,241

NAV

49.64

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.46 7.26 7.04 %

AUM (Cr)

₹7,540

NAV

32.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.01 7.03 7.01 %

AUM (Cr)

₹93

NAV

38.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.3 7.33 6.99 %

AUM (Cr)

₹1,064

NAV

46.35

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.86 7.19 6.95 %

AUM (Cr)

₹892

NAV

97.92

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.94 15.74 15.56 %

AUM (Cr)

₹363

NAV

47.61

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.31 10.85 10.77 %

AUM (Cr)

₹66

NAV

59.84

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.79 9.52 10.3 %

AUM (Cr)

₹5,648

NAV

39.58

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.41 9.72 10.28 %

AUM (Cr)

₹492

NAV

102.87

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.29 9.87 10.27 %

AUM (Cr)

₹22,609

NAV

72.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.05 9.65 10.1 %

AUM (Cr)

₹7,725

NAV

109.42

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.81 9.85 9.99 %

AUM (Cr)

₹286

NAV

31.13

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.23 9.21 9.95 %

AUM (Cr)

₹839

NAV

38.8

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.24 9.8 9.91 %

AUM (Cr)

₹1,978

NAV

43.18

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.81 9.5 9.77 %

AUM (Cr)

₹1,321

NAV

81.46

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.97 13.18 14.01 %

AUM (Cr)

₹7,241

NAV

155.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.64 13.26 13.96 %

AUM (Cr)

₹2,935

NAV

69.1

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.82 12.75 13.39 %

View More

What are ELSS Funds?

ELSS (Equity Linked Saving Scheme) is a type of fund that invests primarily in stocks (equity). It offers the dual benefit of potential for high returns and tax benefits. Investments in ELSS qualify for a tax deduction under Section 80C of the Income Tax Act in India, up to a limit of ₹1.5 lakh per year. ELSS funds have a lock-in period of 3 years, meaning you cannot withdraw your investment before that period.

You can invest in ELSS funds through SIP. This is a popular option as it allows you to benefit from the tax advantages of ELSS while also leveraging the benefits of SIP, such as rupee-cost averaging and disciplined investing.

  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 5 Years 7 Years 10 Years
High Growth Fund Axis Max Life
Rating
28.6% 21.1%
17.8%
View Plan
India Consumption Fund Tata AIA Life
Rating
26.65% 20.83%
20.1%
View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz
Rating
20.38% 12.4%
14.97%
View Plan
Opportunities Fund HDFC Life
Rating
21.72% 14.49%
14.67%
View Plan
Opportunities Fund ICICI Prudential Life
Rating
20.06% 13%
12.83%
View Plan
Multiplier Birla Sun Life
Rating
22.25% 14.42%
15.78%
View Plan
Virtue II PNB MetLife
Rating
20.99% 16.04%
15.13%
View Plan
Equity II Fund Canara HSBC Life
Rating
16.71% 9.95%
10.99%
View Plan
Balanced Fund LIC India
Rating
10.6% -
-
View Plan
Equity Fund SBI Life
Rating
16.87% 11.68%
12.1%
View Plan
Fund rating powered by
Last updated: Aug 2025
Compare more funds

  Returns
Fund Name 3 Years 5 Years 10 Years
Active Fund QUANT 23.92% 31.48%
21.87%
Flexi Cap Fund PARAG PARIKH 20.69% 26.41%
19.28%
Large and Mid-Cap Fund EDELWEISS 22.34% 24.29%
17.94%
Equity Opportunities Fund KOTAK 24.64% 25.01%
19.45%
Large and Midcap Fund MIRAE ASSET 19.74% 24.32%
22.50%
Flexi Cap Fund PGIM INDIA 14.75% 23.39%
-
Flexi Cap Fund DSP 18.41% 22.33%
16.91%
Emerging Equities Fund CANARA ROBECO 20.05% 21.80%
15.92%
Focused fund SUNDARAM 18.27% 18.22%
16.55%

Last updated: August 2025

Compare more funds

How Can You Redeem Your Investments In ELSS?

Investing in Equity Linked Savings Scheme (ELSS) funds offers tax-saving benefits and potential returns. Redeeming your ELSS funds involves simple steps:

For Lump Sum Investments:

  • Contact Fund House: Reach out to the fund house where you invested.

  • Submit Redemption Form: Fill out the form accurately, specifying the redemption amount.

  • Verification and Timeline: The fund house will verify your request and credit the redemption amount to your bank account within 3-7 working days.

For SIP Investments:

  • Review SIP Terms: Understand the lock-in period and terms associated with your SIP investments.

  • Stop SIP and Redeem: Contact the fund house to stop further SIP instalments and redeem existing units.

  • Follow Redemption Process: Submit the necessary documents and follow the redemption process outlined by the fund house.

SIP Calculator

I want to invest Pro Tip
Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth
/Month
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
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Total Wealth ₹22.4 L
View Plans
I want to save
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
  • 1
  • 2
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  • 39
  • 40
Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
  • 1
  • 2
  • 3
  • 4
  • 6
  • 7
  • 8
  • 9
  • 11
  • 12
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
High Growth Fund
17.8%
High Growth Fund
India Consumption Fund
20.1%
India Consumption Fund
Accelerator Mid-Cap Fund II
14.97%
Accelerator Mid-Cap Fund II
Opportunities Fund
14.67%
Opportunities Fund
Opportunities Fund
12.83%
Opportunities Fund
Multiplier
15.78%
Multiplier
Virtue II
15.13%
Virtue II
Equity II Fund
10.99%
Equity II Fund
Accelerator Fund
13.98%
Accelerator Fund
Pension Dynamic Equity Fund
11.55%
Pension Dynamic Equity Fund
Frontline Equity Fund
14.42%
Frontline Equity Fund
Equity Pension
12.59%
Equity Pension
Equity Top 250 Fund
11.73%
Equity Top 250 Fund
Growth Opportunities Plus Fund
14.9%
Growth Opportunities Plus Fund
Future Apex Fund
13.64%
Future Apex Fund
US Equity Fund
13.87%
US Equity Fund

How to Redeem Lump Sum Investments From ELSS?

Redeeming lump sum investments from Equity Linked Savings Schemes (ELSS) involves a simple yet time-sensitive process. Once you invest a lump sum amount in an ELSS, the lock-in period begins from the date of purchase. In practical terms, this means you can only sell your ELSS units after a period of 3 years from the investment date.

Illustration

Suppose you invest Rs. 10,000 in an ELSS scheme on 10th March 2024. The lock-in period for this investment ends on 11th March 2027, exactly 3 years from the date of your initial investment.

start-an-sip-today-watch-your-money-grow start-an-sip-today-watch-your-money-grow

How to Redeem SIP Investments From ELSS?

ELSS (Equity Linked Saving Scheme) funds, often considered among the Best SIP Plans for tax-saving, offer tax benefits but come with a mandatory lock-in period of 3 years. This period applies to each individual SIP instalment, not the entire SIP.

Here's how to redeem your SIP investments from an ELSS fund, with an example:

Check the Lock-in Period:

  • Each SIP instalment has a separate lock-in period starting from its investment date.

  • You can't redeem any units before 3 years from the date of each instalment.

Example:

  • Let's say you started an SIP of Rs. 5,000 in an ELSS fund on January 1, 2021. This installment can be redeemed after January 1, 2024.

  • Similarly, the SIP instalment invested on February 1, 2021, can be redeemed after February 1, 2024, and so on.

How to Calculate Your Returns on ELSS SIP Investments?

One effective method to determine the returns on your ELSS SIP investments is by using an SIP calculator. An SIP calculator is a financial tool that helps you estimate the future value of your investments made through SIPs. By using an SIP calculator, investors gain insights into the potential wealth accumulation from their ELSS SIPs, enabling them to make informed decisions regarding their investment strategies.

Start Small & Build Your Wealth For A Brighter Tomorrow Start Small & Build Your Wealth For A Brighter Tomorrow

Conclusion

By understanding the redemption process and adhering to the lock-in periods associated with ELSS investments, investors can effectively manage their portfolios and achieve their financial goals with confidence.

SIP Hub

FAQ's

  • Am I required to redeem my ELSS units once the lock-in period ends?

    No, the redemption of ELSS units post-lock-in period is not mandatory. ELSS funds transition into open-ended schemes with full liquidity after three years, offering the flexibility to continue holding or redeem based on your financial objectives.
  • What happens if I don't redeem my ELSS units after the lock-in period?

    Your ELSS investment remains unaffected if you choose not to redeem after the lock-in period. It continues to be subject to market fluctuations, with gains taxed according to regulations upon future redemption.
  • Is it advisable to redeem my ELSS after the lock-in and reinvest in another ELSS for tax benefits?

    While redeeming and reinvesting in another ELSS for tax benefits is an option, consider your financial goals and existing fund performance. Ensure such actions align with your overall investment strategy and risk tolerance.

˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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