Money word, in plain English ← Back to all terms
Lock-in
A period during which you cannot withdraw an investment, however much you want to.
Example. An ELSS fund has a three-year lock-in, the shortest among tax-saving options.
A lock-in is a hard rule, not a fee. During it, redemption is simply not allowed, which is different from an exit load where you can leave but pay for it. Lock-ins usually accompany a tax benefit, because the government wants the money to stay put. Check the lock-in before you invest money you might need, since no amount of urgency unlocks it early.
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