I have been investing in Axis Long Term equity since 2014 every year to claim tax deductions under Section 80C of the income tax. I invested Rs 50,000 the first year and ever since then I have invested Rs 90,000, as the balance is taken care by my insurance premiums and PF contribution. Now that the three year lock-in is over in case of some of the investments, what should I do?
Rakhi Baweja, Bhopal
Your move to invest in an equity-linked savings scheme (ELSS) to benefit from tax savings augurs well for you. The choice of fund is good and you would have experienced the performance of the same at the time that you have invested in it. An ELSS is like a diversified equity fund, so investments in it can stay for longer than the lock-in, wherein you need not worry about any liquidity issues to exit from it. If you are not in need of the money, you should stay invested in this fund for longer. The fund also features in the OLM Elite list for Beginners, and has a long-term performance track record to stay invested.
