Equity Linked Savings Schemes (ELSS) and Unit Linked Insurance Plans (ULIPs) both offer tax benefits under Section 80C of Income Tax Act. ELSS is mutual fund scheme that invests a minimum of 65% of its corpus in equities and has three-year lock-in period, while ULIPs are insurance products with minimum five-year lock-in. ULIPs are generally less volatile compared to ELSS.