ULIP vs ELSS
5paisa Research Team
Last Updated: 30 May, 2025 12:38 PM IST

Content
- What is ULIP?
- What is ELSS?
- Differences between ULIP vs ELSS
- Tax Treatment - ULIP vs. ELSS
- Is ULIP a good investment?
- Is ELSS a good investment?
- Conclusion
ULIPs and ELSS are two popular investment options that individuals often consider when planning their financial future. ULIPs, or Unit Linked Insurance Plans, offer the dual benefit of investment and insurance coverage. They allow investors to allocate funds to different investment options while providing life coverage. On the other hand, ELSS, or Equity Linked Saving Schemes, are tax-saving mutual funds that primarily invest in equities. ELSS investments offer the potential for high returns and tax benefits.
ULIPs are investment-cum-insurance products that provide the dual benefit of wealth creation and life coverage. These plans allow individuals to invest in a variety of funds while also providing insurance coverage, making them a comprehensive financial product.
On the other hand, ELSS is a type of mutual fund that primarily focuses on equity investments. ELSS investments are known for their potential for high returns and tax benefits, making them an attractive option for those looking to save taxes while participating in the equity markets.
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