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Can I sell my investments in Franklin India Taxshield Fund?

ET Online|
Last Updated: Jun 03, 2020, 03.25 PM IST

Summary If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

I have been investing in Franklin India Taxshield Fund (direct, growth) since 2018. The scheme is not doing well, but due to the three-year mandatory lock-in period I am unable to withdraw money from it. What should I do?
-Shekhar Singh

Franklin India Tax Shield Fund is an Equity Linked Saving Scheme or ELSS fund that qualifies for tax deductions under Section 80C. Tax saving mutual funds come with a mandatory lock-in period of three years and it is not possible to withdraw money from them during this period.

It is not clear whether you have been investing lumpsums or through SIP. If you have been investing through SIPs, you should keep in mind that you will have to wait for every SIP instalment to complete three years. Only after that you can withdrawing the money.

Franklin India Taxshield Fund was known as reliable conservative ELSS fund for a very long time. However, the fund has been struggling to find form for a while. A quick look at data in Value Research reveals that it has failed to beat its benchmark and category for a long period. You may stop your SIP in the scheme and invest the money in a better performing scheme from the ELSS category.

For more, read: Best ELSS funds to invest in 2020

(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)

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