What Is The Difference Between The ULIP And ELSS?


The unit linked insurance plans are a combination of life insurance and also the investments that are provided by the insurance companies. Whereas the Equity linked savings scheme will be much different for the people who want to join in this equity fund. Apart from ulip vs elss comparison, they have the similarity that they are investments that are made for the tax saving. This is much helpful for the people who want to get huge returns by joining in any of the schemes.

What are the benefits of elss?

The elss is the best one compared to the ulip as the people can able to estimate their fund, investment and the amount that returns. This is the best one for the people who want to get a huge number of returns with less tax deduction. This is the most procedure one by the people in recent times compared to ulip.

What is ulip?

The ulip is the kind of mutual fund that provides a high return and also gives the insurance cover. When a person’s parent dies then the ulip will provide the lump sum amount of the money. Also, they will get monthly regular incomes. But the tax will be deducted from the income and only the amount after which is available is received for the clients. This kind of mutual fund charges a little bit high which includes the premium allocation, administration and fund management. You can also find the mortality charge in this plan. But the charge for the fund managing will be less than other mutual funds. This is because as per the regulation by the government the high charges should be avoided as this will reduce the huge returns. If you are the person who is looking for the liquid fund then you should not pick the ulip.

Why is it necessary to know about the comparison of ulip and elss?

The people who are going to invest in the mutual fund should have to know clearly about the ulip and elss and their companies. This will be much helpful for them to pick the right fund in the comparison of ulip vs elss.  In the ulip people can able to find the lock-in period of the five years whereas the elss will have the lock in period of just three years. The returns in the ulip will be much less compared to the elss as this is because of the ulip support tax deduction. But in the equity linked savings schemes, the tax is detectable only when it is crossed over one lakh rupees mark. Even though both the schemes are not good for liquidity purpose the people can able to get the fund after just three years. You can find the multiple charges in this ulip and so you will get only a few returns compared to the other savings scheme elss. This scheme consists of only the fund management and the exit load charge. This is the best one for the new users.

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