Lock-in period

A lock-in period is a fixed stretch of time during which you cannot redeem an investment, counted from the date each unit was bought. In mutual funds it is most common in ELSS (Equity Linked Savings Scheme), where every instalment is locked for three years from its own purchase date. Lock-in is not the same as an exit load: a load is a fee you can choose to pay, while a lock-in is an absolute bar on redeeming. Plan the money you commit accordingly, because no emergency provision overrides it.