• Home
  • Contact Us
iBusiness Angel
No Result
View All Result
Sunday, April 2, 2023
  • Home
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing
  • Home
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing
No Result
View All Result
No Result
View All Result
Home Business

ULIP, ELSS, AND PPF – KNOW THE DIFFERENCE

by Harold Washington
September 28, 2020
in Business
0
ULIP, ELSS, AND PPF – KNOW THE DIFFERENCE
154
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Driven by ambitious life goals and traditional, millennials today are motivated to earn more and invest their savings. This tech-savvy crowd has effortless access to much information to be aware of several investment options available to them, to ensure that their money works for them. Multiple surveys show that unlike their parents and grandparents, the young population prefer equity over real estate or gold or any other traditional investment. One thing that investors often look in their investment options is the tax-saving perks it offers. Because let’s face it – nobody likes the additional outlet of money from their account. Some of the most popular tax-saving investment options are ELSS (equity-linked savings scheme), ULIP (unit-linked insurance plans), and PPF (public provident fund).

As all these schemes, help to save tax and also help to build a retirement corpus, there’s always an element of confusion in choosing the apt scheme for one’s portfolio. This article aims to offer a comparative analysis between ELSS vs ULIP and ELSS vs PPF.

ULIP vs. ELSS vs. PPF

The following table summarizes the difference between ULIP and ELSS and PPF

Basis of comparison ELSS ULIP PPF
Definition These are tax saving mutual funds with a majority of their corpus invested in  equity or equity-related securities.

 

It is an investment plus insurance product where a part of the investment is used for investments in preferred financial products. In contrast, the other part is used for securing the investor’s life. It is a savings scheme provided by the government of India wherein the government pays a fixed, predetermined interest. PPF schemes are considered as one of the safest tax-saving investment options.
Expected returns 15-18% Depending on the investor’s profile 8%-8.5%
Tax benefits Tax reduction of up to Rs1.5 lac p.aunder section 80C. Gains above Rs 1 lac are taxed at 10% without the indexation benefit. The invested amount is offered tax deduction of up to Rs1.5 lacu/s 80C. However, the gains are taxable. Money deposited in a PPF account receives tax benefits of up to Rs1.5 lac under section 80C of the IT Act. Interest gained is tax-free.
Liquidity High-liquidity is offered at all times after the lock-in period. Funds under ULIP policy can be available after the lock-in tenure subject to further policy conditions. Low or partial withdrawals after the expiry of 7 years from the date the account is opened
Lock-in period Three years Five years Fifteen years
Who can invest? An investor looking for dual benefits of tax saving and creating wealth An investor looking for wealth creation along with alife cover Any Indian citizen who wants to achieve their long-term investment goals

 

As you can see, all these investment options offer tax benefits of up to Rs1.5 lac u/s 80C, although ELSS funds are a class apart. Want to know why? For starters, ELSS mutual funds are the only type of 80C investment option that offers the lowest lock-in period of 3 years, as opposed to 5 and 15 years. What’s more, these funds offer significantly higher returns than the other two investment options. ELSS funds are also popular because of the flexibility it offers to its investors. Unlike ULIP, you can shift to different ELSS funds if you are not satisfied.

Irrespective of the investment product you decide to go forward with, make sure it is in line with your investment horizon, financial goals, and risk profile. Happy investing!

Harold Washington
Harold Washington
No Result
View All Result

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019

Categories

  • Accounting
  • Auto
  • Business
  • Coworking space
  • Featured
  • Finance
  • Human Resource
  • Industrial Fume Extractors
  • Industry
  • Investment
  • Laboratory
  • Law
  • Legal
  • Marketing
  • Real Estate
  • Sales
  • Tech

Recent Post

What Exactly Is Automated Digital Accessibility Testing?

March 26, 2023

How Photo Booths Can Help Your Event Succeed

March 25, 2023
Tips and Strategies from Top Event Companies in Singapore

Tips and Strategies from Top Event Companies in Singapore

March 22, 2023
The Future of Internet Technology Providers 

The Future of Internet Technology Providers 

March 22, 2023
Incredibly essential in hiring the professional law firm SEO agency

Incredibly essential in hiring the professional law firm SEO agency

March 21, 2023

Advertisement

Recent Post

What Exactly Is Automated Digital Accessibility Testing?

March 26, 2023

How Photo Booths Can Help Your Event Succeed

March 25, 2023
Tips and Strategies from Top Event Companies in Singapore

Tips and Strategies from Top Event Companies in Singapore

March 22, 2023

Quick Link

  • Contact Us
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing

Featured

Copyright © 2023 ibusinessangel.com | All Right Reserved .

No Result
View All Result
  • Home
  • Finance
  • Accounting
  • Sales
  • Business
  • Marketing

Copyright © 2023 ibusinessangel.com | All Right Reserved .

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In