Glossary
/Lock-in Period
What is a Lock-in Period?
Your money is basically in jail for a set amount of time. During this window, you absolutely cannot sell the shares or units you bought, no matter how badly the market crashes. The most famous one in India is the 3-year lock-in on ELSS tax-saving mutual funds. Promoters who bring their company public via an IPO also face a strict lock-in, so they can't just cash out and run away on day one. It forces you to stay invested.
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