ULIPs v/s ELSS

What is difference between a ULIP and an ELSS? ULIP or Unit linked insurance plan is offered by life insurance companies and is a combination of insurance and investment. ULIPs have high initial charges and are not smart investment products. ELSS or Equity Linked Saving Schemes are nothing but tax saving equity diversified mutual funds. ELSS schemes have offered superior returns in the past years when compared to any tax saving instrument. For insurance requirements, opt for a term plan. I am investing Rs 1000 per month through SIP in SBI Multicap Fund & Principle Large Cap fund. Is my selection ok? - Rajendren Both the funds selected by you are unrated funds with a small track record. SBI Multicap has not done well since its inception and you switch to rated funds like Reliance Vision or HDFC Equity. Principal large cap has performed well till now. Continue to remain invested in it and review every 6 months. I am investing in HDFC Equity (Rs 1200 pm sip) since 24 month. I want to know if I should continue for another 12 years? I need the amou

This article was originally published on March 12, 2008.