ELSS (Equity linked saving scheme) and (Unit linked insurance plans) both are common one comes under similar basic rules. Today insurance and investment are higher. So people searching the best way for both these purposes. Many of the people need to know about elss vs ulip. These are different plans that give different benefits to you. These are life insurance and investment getting by life insurance companies.
But both are the best tax saving investment and give better benefits to you. Both are a better investment option that offers different returns for your investment. Among the list of investment options, these both are plays an important role. It is because that gives common denominators connect to you. That is called tax benefits. Both are having less risk of categorization.
What is the Equity saving scheme?
This is one of mutual fund plan comes under utmost benefits to investors. It allows people to get a scheme with different capitalization. With the financial year, these are preferable ones to invest in order to get better returns. This scheme you can use with a greater lock-in period. These are free to invest and you can invest the amount you like the most. The return you can get depends on your scheme.
In order to get the tax deduction, surely you can use this scheme. These are some preferable options for many people today. It is because the plan offers high returns to you with tax benefits. The other benefits of using this scheme are you can continue the scheme after the completion of the lock period of time. When compared to the other plans, this is having less risk and better than a fixed deposit.
What is a unit-linked insurance plan?
These are also one of the investment plans. This insurance scheme is part of the investment for your future plan. This helps investors majorly, while the invested use this scheme a per their choice. Investors can choose to plan from the list of plans such as equity, debt, hybrid and money market funds. This entire scheme you can get through ULIP. The returns are varying from one plan to other plans in the scheme.
Of the amount invested in ULIP, then you will the huge returns easily. And this you can claim with tax deduction under Section 80C of Tax Act. These investments have a lock-in period of five years. Based on the lifecycle of an investment, you can choose your scheme easily. This is a protective type of investment, and different from other normal traditional investment policies.
Overall, the lock-in period, return, tax benefits all are best in both schemes. If you are interested to invest any of the plan means, surely you will consider both plans. This gives better packages to you. Both these funds you can continue after the lock-in period completion. Now you can get clarification about elss vs ulip. After analyses of both the scheme, you have to choose the plan that based on your choice.