All ELSS and Tax saving mutual fund info has been consolidated into a single post. Read this post instead.
Shriya recently read the book and had this query on ELSS Mutual funds.
I came across your book : Grownups are just kids with money and found your inputs useful. I have one ELSS with DSP Black rock. Since ELSS has locking period of 3 years .what should one do after the 3 years are completed ?
The simple answer; do nothing.
After the 3-year lock-in, nothing about the fund changes fundamentally. The fund manager still runs the fund the same way as he/she did earlier. So if the fund has continued to perform well, you can stay invested and let the money grow. Equities work best when you stay invested for the long term. And history has proven that the longer you stay invested, the better. To see what happened to 1 Lakh of investment, when it was left untouched for 20 years, despite the stock market witnessing several minor and at least one major crash, see this post here.