What is a lock-in period?
This is a pre-defined period during which the investments cannot be redeemed. This could be due to a legal implication (erstwhile 54 EA & 54 EB or ELSS sections of Income Tax Act ) or due to a restriction levied by the AMC (this could be for a short period of say, 7 / 10 days depending upon the AMC). This short restriction is to ensure that the Units are not redeemed before encashment of the Investment cheque.
