Some Points -
1. As the name suggests ULIP’s are unit linked insurance plan means investment cum insurance cover. These r like mutual fund + Insurance
MF’s are only for the purpose of investment
2. All the ULIP’s comes under sec.80c i.e, it has tax deduction but not all the MF’s will not get tax deduction only tax saving mf’s are.
3. ULIP’s wil take some amount as charges (some only for first year and other for minimum 3yrs). In mf’s they only charge as entry load and exit load and its very minimal.
4. ULIP’s and mf’s are both have 3yrs lock in period but investor has to invest minimum 3yrs in ULIP’s and in Tax saving mutual fund investor can invest for only one year.
5. In ULIP’s investor have switch over options, you can use it according to your risk taking appetite and MF’s they don’t have.
6. ULIP's has to be invested at least for 3yrs min and you'll get sum assurance for a given term according to policy conditions, but in MF’ s you’ll not get any sum assurance(now a days some MF are giving insurance freely )
7. Both r managed by fund managers, so they'll take care of your investments and generate returns(based on market risk)

Hope now it's clear to you