Why you can't redeem your entire ELSS SIP investment today

ELSS is a special kind of piggy bank for grown-ups that helps them save on taxes.

The government made a rule that money put in this piggy bank must stay there for three years.

If you put in money every month, each month's deposit is locked for three years from that date.

That means you can only take out one month's money at a time, many years later.

You cannot pay a fine to get the money out early, even if you really need it.

Each monthly deposit also gives you a tax benefit in the year you put it in, not later.

The tax benefit only works under the old tax rules.

Some experts say if you don't get the tax benefit, other savings plans may be better.

Others say the choice depends on how much you can save and what the market is doing.

So it's important to understand the rule before you start saving.