If any ELSS mutual funds scheme have a lock in for three years how can they be open ended...?

ELSS schemes give tax benefits under section 80c (income tax deptt).
they have a lock in for three years...
but schemes like SBI MAGNUM TAX GAIN SCHEME 93 is open-ended..
does that mean that any body can invest say in month of may and get out of it in month of june.....
or are the investors locked in for three years....

Hey sam

All ELSS schemes can be availed of for tax benefits under section 80 C. And at the same time, there is a lock-in period of 3 years on all schemes including SBI magnum tax gain. For the first 3 years from investment, you would be locked in. Now you can withdraw your funds during this period, too, however, there would be higher exit load charges.
A differentiation has to be made between open-ended and close-ended schemes. SBI's magnum tax gain is an open-ended scheme with lock-in stipulation for a new investor.
Now you must be thinking how come SBI tax gain is open-ended after all this. A close-ended scheme is one wherein no one can invest once the period of NFO is over. Like SBI's one india fund is a close-ended fund. you can't invest into it at this point of time. On the contrary, you can invest into SBI tax gain at any point. i hope you got the point.

open ended schemes means a invester can invest any time during the tanure of scheme....

in ELSS u can invest any time but u cant take money back for next 3 yrs.....NOT BY PAYING EXTRA EXIT LOAD

while in closed ended scheme money can be invested during offer period and then no furthur investment can be made then after.

if u are a new invester dont invest in closed ended mf...

invest only in open ended sc....in any case SBI tax saver is good Sc

http://rahul.org.in

two points..
1. open-ended means you can buy at any time you want... closed-ended also means closed for buying
2. lock-in is for tax benefits... you can exit before 3 years.. but then the tax benefit you claimed u/s 80C for that investment becomes liable for tax... for the exact taxation calculation i would suggest you check with your CA