Which one is better ELSS or ULIP?
As shown above, ELSS offers a better package if you are investing for tax benefits and are comfortable with the market exposure of your capital. ULIPs, on the other hand, are primarily insurance options but not as efficient as an investment tool.
Which is the best mutual fund for tax savings?
The table below shows the top-performing ELSS mutual funds based on the past five year returns:
| Mutual fund | 5 Yr. Returns | Min. Investment |
|---|---|---|
| Mirae Asset Tax Saver Fund – Direct Plan – Growth | 24.25\% | ₹500 |
| Canara Robeco Equity Tax Saver Fund | 20.99\% | ₹500 |
| JM Tax Gain Fund – Growth | 19.21\% | — |
| Mirae Asset Tax Saver Fund | 22.52\% | ₹500 |
Is ULIP exempt from tax?
Both ULIP and National Savings Certificate (NSC) provides tax benefit u/s 80C of the Income Tax Act, 1961. Investments made in ULIPs of up to Rs. 1.5 lakh are eligible for tax deduction under the overall limit offered under Section 80C.
Why mutual fund is better than ULIP?
The reason being, ULIPs promise a fixed sum whether or not the investment plan makes money. In comparison, the returns from mutual funds vary depending on the risk factor. Equity mutual funds have the potential to offer higher returns, while debt mutual funds offer slightly lower returns.
What are the best ULIP products in India?
Best ULIP Plans in India 2021
| Plan Names | Entry Age | Minimum Premium |
|---|---|---|
| Bajaj Allianz Future Gain | 1 to 60 years | Rs. 25,000 |
| Bajaj Goal Assure | 0 years (30 days) to 60 years | Rs. 3,000 to Rs. 36,000 |
| Birla Sun Life Wealth Assure ULIP Plan | 30 days-65 years | Rs.1,00,000 per annum |
| Canara HSBC Grow Smart Plan | 7 years-65 years | Rs.25,000 per annum |
Which ELSS mutual fund is best to invest?
Top Mutual Fund Schemes to Invest
- Nippon India Tax Saver (ELSS) Direct-G.
- LIC MF Tax Plan Direct-G.
- Principal Personal Tax Saver Direct.
- Canara Robeco Equity Tax Saver Direct-G.
- SBI Long Term Equity Fund Direct-G.
- Baroda ELSS 96 Direct-G.
- BNP Paribas Long Term Equity Direct-G. 63.4130.
- Union Long Term Equity Direct-G. 43.6400.
Is ULIP tax-free after 5 years?
“So, most people have queries about the implications of tax on ULIP surrender after 5 years. The answer is, if you have completed five years, there will be no surrender charge and the surrender value will also be tax-free,” said Bangar.
Which is best for mutual fund?
The table below shows the best equity funds:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Technology Fund | 33.71\% | 44.16\% |
| Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan | 33.96\% | 43.89\% |
| TATA Digital India Fund DIRECT Plan Growth | 35.85\% | 43.73\% |
| SBI Technology Opportunities Fund – Direct Plan – Growth | 30.57\% | 40.41\% |
Which ULIP is best in India?
Comparison of Top ULIP Plans in India
| ULIP Plans | Minimum Entry Age | Maximum Entry Age |
|---|---|---|
| Bajaj Fortune | 1 Year | 63 Years |
| Bajaj Future Gain | 1 Year | 60 Years |
| ICICI Wealth Builder | 0 Years | 69 Years |
| Aegon iMaximize | Option 1: 7 Years Option 2: 18 Years | Option 1: 55 Years Option 2: 50 Years |
Should you invest in ULIPs instead of ELSS?
The ULIP can become as profitable as a mutual fund only after 10 years of holding, if you look at it on a post-tax basis. Till then the upfront loads on ULIPs are too high. Therefore, there is no advantage in opting for ULIPs over ELSS even after considering LTCG Tax.
What are ELSS mutual funds?
For this reason, ELSS funds are also termed as a Tax Saving Mutual Funds. Investments upto INR 1,50, 000 in ELSS Mutual Funds are liable for tax deductions from the Income, as per Section 80C of the income tax Act. Though ELSS is a type of Equity Funds, it offers various unique features that make it different from the usual equity funds.
What are the tax benefits of ULIPs?
In a ULIP product, an individual enjoys tax benefit at the time of investments U/S 80C to the extent of the maximum tax-deductible value of Rs. 1.5 lakh; the returns are totally exempted from tax U/S 10 (10D).
What are the features of equequity linked savings scheme?
Equity Linked Savings Schemes (ELSS) have some unique features: 1 3 years lock-in period while equity funds have no lock-in period. 2 Tax Deduction in investments upto INR 1,50,000 under section 80C of the Income Tax (IT) Act. 3 As per the Budget 2018, Gains up to INR 1 lakh are free of tax. Tax at 10\% applies to gains above INR 1 lakh.