Introduction to ELSS and Its Importance in India
Equity Linked Savings Scheme (ELSS) has emerged as a preferred investment option for many Indian investors seeking both wealth creation and tax-saving opportunities. ELSS is a type of diversified equity mutual fund that offers the dual advantage of potential market-linked returns and tax benefits under Section 80C of the Income Tax Act, 1961. By investing in ELSS, individuals can claim a deduction of up to ₹1.5 lakh per financial year, thereby effectively reducing their taxable income. The popularity of ELSS in India stems from its relatively short lock-in period of three years—the shortest among all Section 80C options—and its potential for long-term capital appreciation. As more Indians move towards digital financial management, understanding how to track and redeem ELSS units online has become increasingly relevant for achieving investment goals and maximising tax efficiency.
2. Prerequisites for Online Tracking and Redemption
Before you can begin tracking and redeeming your ELSS (Equity Linked Savings Scheme) units online in India, there are certain essential prerequisites that investors must ensure are in place. Adhering to these requirements ensures a seamless digital experience, fully compliant with local regulatory norms and financial protocols. Below is a checklist of the most critical prerequisites:
PAN Card
The Permanent Account Number (PAN) issued by the Income Tax Department is mandatory for any mutual fund transactions in India. It acts as a unique identifier for all your financial activities and investments, including ELSS.
Mutual Fund Folio Number
Your folio number serves as an account number with the Asset Management Company (AMC). This unique identification is crucial for tracking your investment portfolio and processing any redemption requests online.
Online Account Access
You must have registered for online access with either:
- The respective AMC’s official website or app
- The Registrar and Transfer Agent (RTA) such as CAMS or KFintech
- A trusted third-party mutual fund platform like Groww, Zerodha Coin, or Paytm Money
Comparison Table: Online Account Options
| Platform Type | Key Features | Typical Use Case |
|---|---|---|
| AMC Website/App | Direct access, detailed statements, faster updates | Investors preferring direct interactions with fund houses |
| RTA Portal (CAMS/KFintech) | Consolidated view across multiple AMCs, easy transaction history access | Investors with diversified portfolios across several fund houses |
| Third-Party Platform | User-friendly interface, additional tools like goal planning, consolidated dashboard | Younger investors or those seeking ease of use and analytics features |
Additional Requirements
- An active email ID and registered mobile number linked to your folio for OTP-based authentication and communication from the AMC or platform.
- KYC (Know Your Customer) compliance as mandated by SEBI regulations. If not already completed, this process must be finished before making any online transactions.
Ensuring these prerequisites are met will help you navigate the process of tracking and redeeming ELSS units online smoothly, reflecting both regulatory compliance and digital convenience tailored to Indian investors.
3. How to Track ELSS Investments Online
Keeping a close eye on your ELSS (Equity Linked Savings Scheme) investments is essential for making informed decisions and optimising your tax-saving journey. Thanks to the rapid digitisation of financial services in India, tracking your ELSS portfolio has become seamless and hassle-free. Here’s a step-by-step guide to help you monitor your fund status, check Net Asset Values (NAVs), and assess performance using popular Indian mutual fund platforms and mobile apps.
Step 1: Register or Log in to Your Mutual Fund Account
Begin by visiting the official website of the Asset Management Company (AMC) where you invested or log in to leading mutual fund aggregator platforms such as Groww, Zerodha Coin, Paytm Money, or ET Money. If you are using these apps for the first time, register with your PAN and mobile number linked to your folio.
Step 2: Navigate to ‘My Portfolio’ or ‘Investments’ Section
Once logged in, head over to the ‘My Portfolio’ or ‘Investments’ tab. This section consolidates all your mutual fund holdings—including ELSS funds—making it easy for you to view them at a glance.
Step 3: Select Your ELSS Fund
Identify and click on the specific ELSS scheme you wish to track. The interface will display details like the number of units held, purchase date, investment amount, and current value.
Checking NAVs
Most Indian platforms update NAVs daily after market hours. You can check the latest NAV by clicking on your chosen ELSS fund. Alternatively, visit AMFI’s website or use their mobile app for real-time NAV updates across all AMCs.
Reviewing Performance
Platforms provide graphical representations showing historical returns—such as one-year, three-year, and five-year performance—enabling you to benchmark your ELSS against indices or peer funds. Look for features like XIRR calculation for SIP investments to get an accurate picture of your returns.
Troubleshooting Tips
If you face issues viewing your portfolio, verify that your KYC is updated and your folio is correctly mapped to your PAN. Most platforms offer customer support via chat or helpline numbers for quick resolution.
By leveraging these digital tools popular among Indian investors, you can confidently monitor your ELSS investments anytime, anywhere—ensuring transparency and control over your wealth-building journey while staying aligned with local financial best practices.
4. Redemption Process for ELSS Units Online
In India, Equity Linked Savings Schemes (ELSS) are popular tax-saving mutual funds with a mandatory lock-in period of three years. This means investors cannot redeem their units before the completion of three years from the date of each investment. Understanding the lock-in and redemption process is crucial for investors aiming to access liquidity or rebalance their portfolios after this period. Here’s an outline of how you can redeem your ELSS units online through various channels commonly used in India.
Understanding the Lock-in Period
For every purchase or SIP installment made in an ELSS fund, there is a separate three-year lock-in. For instance, if you invested via monthly SIP, each installment will be eligible for redemption only after completing its respective three-year tenure. It’s important to track these dates to avoid premature redemption requests.
Online Redemption Channels
1. AMC Websites
You can directly redeem eligible ELSS units by logging into the official website of the Asset Management Company (AMC) where your investment is held. After authentication using your PAN or folio number and OTP, navigate to the ‘Redeem’ section, select the eligible units, and submit your request. The redeemed amount is typically credited to your registered bank account within 3-5 business days.
2. Registrar & Transfer Agents (RTAs)
Major RTAs such as CAMS and KFintech facilitate centralized online transactions across multiple mutual fund houses. By registering on their portals, you can view all your mutual fund holdings, check which ELSS units are free from lock-in, and place redemption requests seamlessly.
| RTA Platform | Key Features |
|---|---|
| CAMS Online | Pan-India coverage, consolidated portfolio view, easy tracking of lock-in completion, e-mandate facility |
| KFintech | User-friendly interface, supports multiple AMCs, real-time transaction status updates |
3. Third-party Platforms
Popular Indian fintech apps and platforms like Groww, Zerodha Coin, Paytm Money, and ET Money enable online tracking and redemption of ELSS units purchased through their services. Redemption steps typically involve:
- Selecting the specific ELSS fund
- Checking eligibility (lock-in expiry)
- Placing a redemption request
- Receiving credit in your linked bank account
Key Points to Remember for Online Redemption
- Only units that have completed three years since allotment can be redeemed.
- The redemption proceeds are subject to capital gains tax as per prevailing laws.
- If investments were made offline, ensure they are mapped to your online account for seamless processing.
- Always verify beneficiary bank details before submitting the final redemption request.
The digitalization of mutual fund operations in India has made ELSS tracking and redemption highly accessible for both urban and semi-urban investors—offering transparency, convenience, and faster processing aligned with modern financial practices.
5. Key Considerations and Common Challenges
When tracking and redeeming ELSS (Equity Linked Savings Scheme) units online in India, it is essential to be aware of several important factors that can impact your experience and returns. The following sections outline these key considerations and common challenges, along with practical tips to navigate them smoothly.
Exit Load: Understanding the Implications
Most ELSS funds come with a mandatory lock-in period of three years from the date of investment. Attempting to redeem your units before this period is not permitted. However, after the lock-in ends, some schemes may levy an exit load if you redeem large amounts or under certain conditions. Always check your fund’s scheme information document (SID) for exit load clauses before initiating redemption online.
Potential Taxation: Stay Compliant
Long-term capital gains (LTCG) tax is applicable on profits exceeding ₹1 lakh per financial year from equity mutual funds, including ELSS, at a rate of 10% (plus cess). Remember that the holding period for ELSS begins from the date of each individual investment, not from the SIP start date if you invest via SIP. It is wise to consult your CA or use government-approved tax calculators to ensure correct reporting and avoid last-minute surprises during e-filing season.
Common Issues During Online Redemption
KYC and Account Linking Problems
Many investors face issues due to incomplete Know Your Customer (KYC) compliance or outdated bank account details linked with their folio. Before initiating online redemption, verify and update your KYC status and ensure your registered bank account is active and correctly linked.
Technical Glitches on Platforms
While most platforms like CAMS, Karvy/KFintech, and AMC portals are robust, temporary technical glitches can sometimes delay transactions. Try redeeming during non-peak hours or contact customer care if you encounter persistent issues.
Delayed Credit of Funds
Redemption proceeds are typically credited within 2-3 business days post-processing. However, delays can occur due to banking holidays or back-end verification processes. Track your transaction using the acknowledgment number provided after redemption request submission, and reach out to your AMC if the credit is delayed beyond standard timelines.
Tips for Smooth Online Redemption
- Always keep digital copies of PAN, Aadhaar, and bank documents handy for verification.
- Use official websites or SEBI-registered intermediaries for transactions—avoid third-party apps that are not verified.
- If you’re new to online redemptions, do a small test transaction first before redeeming larger amounts.
By staying informed about these factors and proactively addressing common challenges, Indian investors can confidently manage their ELSS investments online while optimizing returns and maintaining regulatory compliance.
6. Frequently Asked Questions Specific to Indian Investors
How can I ensure the safety of my ELSS investments when tracking online?
Indian investors often express concerns about digital security. Always use official AMC websites or trusted platforms like CAMS, Karvy (KFintech), or NSDL for tracking ELSS units. Enable two-factor authentication and avoid sharing your PAN, Aadhaar, or login credentials with anyone. The SEBI and AMFI regulate these processes to protect investors’ interests.
Is there any lock-in period while redeeming ELSS units online?
Yes, as per Indian regulations, ELSS schemes come with a mandatory three-year lock-in period for each investment (on a first-in-first-out basis). Redemption requests placed before this period will be rejected by the platform. Ensure you check the date of each SIP or lump-sum investment before initiating redemption.
What documents are required for redeeming ELSS units online?
Generally, you only need your registered email ID/mobile number and access to your folio details. KYC (Know Your Customer) compliance is essential, so keep your PAN and Aadhaar details updated with your AMC or mutual fund distributor. Some platforms may request OTP-based verification for added security.
Are there any tax implications during online redemption?
Redemption of ELSS units is subject to capital gains tax in India. Gains above ₹1 lakh in a financial year attract 10% LTCG tax without indexation benefit. The AMC usually deducts TDS for non-PAN-linked accounts or in case of NRI investors. Always consult a tax advisor if you are unsure about the calculations.
Can I track and redeem ELSS investments made through different platforms at one place?
Yes, consolidated account statements provided by CAMS or NSDL let you track all mutual fund holdings across AMCs using your PAN. For redemption, however, you must use the respective platform where you invested—directly through AMC portals, RTA sites, or third-party apps like Groww, Zerodha Coin, or Paytm Money.
What should I do if my redemption request is delayed?
If your request is not processed within T+3 working days (common timeline in India), contact the AMC’s investor service center or raise a complaint via SEBI’s SCORES portal. Delays are rare but could occur due to incomplete KYC, banking holidays, or technical glitches.
