Profit Sheets

ELSS and ULIP or PPF: Where to invest?

May 15, 2021 02:56 PM

ELSS and ULIP, PPF ... which is better!
There is a big difference between ELSS and ULIPs with tax exemptions. Before choosing these investment tools, the wholesale investor needs to know about them.

There is a big difference between ELSS and ULIP with tax exemptions. Before choosing these investment tools, the wholesale investor needs to know about them.

Equity Linked Savings Scheme (ELSS):

Equity-Linked Savings Scheme (ELSS) is a diversified equity mutual fund that invests mostly in equity instruments. Yields from ELSS investments are higher than those from Public Provident Fund (PPP), National Service Certificates (NSC), and fixed bank deposits. In addition, up to Rs 1.5 lakh is tax deductible under Section 80C of the Indian Income Tax Act, 1961.

Also Read: Know the condition before opting for a fixed deposit with free life insurance

Unit Linked Insurance Plan (ULIPs):

ELSS and ULIP specializes in having the flexibility to select investment allocations. Since the ULIPs‌ market is dependent on fluctuations, the return on investment is entirely borne by the investor. Unit-based insurance policies (ULIPs) are a good choice for those who want to choose the investment path along with life insurance.

* ULIPs offer the opportunity to invest in a variety of mutual funds such as equity, debt and balance. ULIP has the flexibility to switch from one fund to another. The value of ULIPs selected depends on the units of funds covered by the policy and their performance. That is why the ULIP scheme is fraught with various risks.

* ULIPs .. provide investment and insurance under a single policy. Due to this, there was once a craze for these. But later due to market fluctuations they were not able to provide the expected level of return. Now Ulips look better than ever.

* Under Section 80C of the Income Tax Act, premiums payable up to Rs 1.5 lakh per annum are not taxable. No tax will be levied on the sum assured of the nominee if the policyholder dies accidentally while the policy is in progress.

* If the policyholder receives the insurance maturity amount himself after the expiry date, he is not liable to pay tax under Section 10 (10D) of the Income Tax Act.

* No income tax is payable even if the policy is acquired after five years. Policies acquired within five years are taxable according to the income slabs of the individuals.

* In addition to good profits, it is better to choose ULIPs as it can also provide insurance. This also includes tax exemption. ULIPs are good for long-term investments and financial goals. ULIP

* Decide why to invest based on the investor’s goal. Investments should be made on how long it will take and how much risk will be taken. Keep in mind, however, that the benefits of ELSS and ULIPs are different.

Leave a comment


Intraday Tips
Stock Name Open Price Trend Details
Reliance 1930.10 Buy Click Here
Asian Paints 2577.00 Buy Click Here
HDFC 2448.00 Buy Click Here
HDFCAMC 2790.00 Buy Click Here
TCS 3120.00 Buy Click Here


NSE Top Gainers/Losers
COMPANY LTP %CHNG VOLUME
INFY
1,417.90
2.03
32,77,464
TECHM 1,053.80
1.88
16,05,542
BRITANNIA 3,606.00 1.79 3,03,919
TATACONSUM 711.50
1.65
23,85,952
HCLTECH 963.70 1.48 19,76,931
COMPANY LTP %CHNG VOLUME
HINDALCO
384.10
-2.76
74,44,638
JSWSTEEL 697.80 -2.51 37,24,317
TATASTEEL 1,106.65
-1.95
45,67,284
COALINDIA 153.80
-1.57
53,97,691
SBIN
425.65
-1.53 93,71,553