What is the difference between ULIP and ELSS ?

POSTED BY Kalyan ON March 24, 2014 2:42 pm COMMENTS (3)

what is the difference between ULIP and ELSS.which is advantageous.

3 replies on this article “What is the difference between ULIP and ELSS ?”

  1. Viren Phansalkar says:

    Thank you Ashal… I thought I would confuse him more….

  2. ashalanshu says:

    Dear Viren, very good explanation. Congrats.



  3. Viren Phansalkar says:


    The difference can be understood if we find out the long forms of both the terms.
    ULIPs: Unit Linked Insurance Plan.
    ELSS: Equity linked savings scheme.

    So as the name suggests, ULIP is investment cum insurance plan while ELSS is a way by which you can qualify your MF investments for tax rebate.
    So essentially you cannot compare them, except for the fact that both qualify for 80C rebate.
    ULIP would offer you insurance of X amount and would give you returns of Y%. Generally, both X and Y amount would not be sufficient to you. So better do not mix insurance and investment.
    In ELSS, you invest in MFs which offer tax rebate. Example Quantum Tax Saving Fund.

    I hope, i have not confused you more by the above lines 🙁

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