What is the primary difference between ELSS and ULIP? Option: ELSS has a shorter lock-in period than ULIP., ELSS invests primarily in equity, while ULIP offers a mix of investment options., ELSS is a type of mutual fund, while ULIP is an insurance product., All of the above

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What is the primary difference between ELSS and ULIP?

ELSS has a shorter lock-in period than ULIP.

ELSS invests primarily in equity, while ULIP offers a mix of investment options.

ELSS is a type of mutual fund, while ULIP is an insurance product.

All of the above

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Which investment option generally offers higher returns, ELSS or ULIP?

Both offer similar returns

ULIP

Returns depend solely on market performance

ELSS

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Which of the following is a key factor to consider when choosing between ELSS and ULIP?

Financial situation

All of the above

Risk appetite

Investment goals

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What is the primary distinction between ULIPs (Unit Linked Insurance Plans) and Mutual Funds?

"ULIPs are managed by insurance companies, while Mutual Funds are managed by asset management companies.

"ULIPs offer insurance coverage combined with investment, while Mutual Funds focus solely on investment.

"ULIPs are only available to high-net-worth individuals, while Mutual Funds are accessible to all investors.

"ULIPs invest primarily in real estate, while Mutual Funds invest in a diversified portfolio of assets.

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How do ULIPs and Mutual Funds differ in terms of lock-in periods?

"ULIPs typically have a lock-in period of five years, while open-ended Mutual Funds have no lock-in period.

"Both ULIPs and Mutual Funds have a lock-in period of five years.

"ULIPs have no lock-in period, while Mutual Funds have a mandatory lock-in period of three years.

"Lock-in periods for both ULIPs and Mutual Funds are determined by the individual investor.

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What is a key advantage of ULIPs in terms of taxation?

"ULIPs offer tax deductions on premiums paid and tax-free maturity amounts, while Mutual Funds only offer tax deductions for ELSS investments.

"ULIPs allow for tax-loss harvesting, while Mutual Funds do not.

"ULIPs are exempt from capital gains tax, while Mutual Funds are subject to capital gains tax.

"ULIPs offer higher tax deductions compared to Mutual Funds.