PPF vs ELSS

Compare PPF and ELSS (Tax Saving Mutual Funds) to find out the best suitable option for you.

Last Updated : Sep 18, 2019

PPF (Public Provident Fund)ELSS (Equity Linked Savings Scheme)
PPF is highest safe, because PPF invests in government bonds. These bonds are backed by the Government of India.ELSS are open-ended, diversified equity schemes. So it’s risky.
Returns is fixed @7.9% anually.Returns / Dividends are Market linked and not assured. You can expect average 17% or higher returns annually.
Tax exemption category : EEETax exemption category : EEE
Tenure period is 15 years. You can also withdraw some amount from the PPF account after 5 full financial years.Tenure period is 3 years.
Maximum duration is 15 years.There is no such limit in ELSS.
You can invest minimum Rs.500 and maximum is Rs.1,50,000.ELSS doesn’t have such limitation. the section 80C limit(1.5 L) will be applicable for claiming deductions.
If you can't take risk then PPF investment is suitable for you.If you can take risk and want to get more returns then you ELSS is best for you.
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