How Lock-in period works
Lock-in is different from recommended holding period and exit load. A product can be redeemable with a charge, freely redeemable but unsuitable for short horizons, or legally unavailable until the lock expires.
A rupee example
₹1 lakh locked for three years cannot fund a bill due next year even if its displayed value has risen during that time.
The example isolates one idea so the arithmetic is visible. Real outcomes can include taxes, fees, cash-flow timing and market movement that the simplified example does not model.
Why it matters for your family
Map locked money only to goals after the release date and keep emergency reserves elsewhere. Tax benefit does not compensate for missing liquidity.
Questions people ask
- What does Lock-in period mean?
- A lock-in period is a stated interval during which an investment generally cannot be freely redeemed or transferred under the product rules.
- Why does Lock-in period matter for a family?
- Map locked money only to goals after the release date and keep emergency reserves elsewhere. Tax benefit does not compensate for missing liquidity.
- Where can I verify information about Lock-in period?
- Start with SEBI Investor, linked on this page, and the current official document for the product or tax year involved.