Which is better for tax saving & wealth growth? Let's break down the giants: PPF (Public Provident Fund) vs ELSS (Equity-Linked Savings Scheme) for your ₹10 lakh salary.
Govt-backed, guaranteed 7-8% returns. E-E-E tax status (Exempt, Exempt, Exempt) on contributions, interest, and maturity. Long 15-year lock-in, ideal for retirement planning. Low risk, steady growth.
Market-linked equity funds. Potential double-digit returns over long term. Shortest 3-year lock-in for tax benefits. Gains over ₹1L in a year taxed at 10%. Higher risk, higher reward potential.
No single 'winner'. Your age (young = ELSS), risk appetite (low = PPF), and financial goals define the best fit. It's about *your* unique financial picture, not 'either/or'.
For a ₹10 lakh salary, a blend often works best. If your EPF covers debt, add ELSS for equity exposure. PPF for stability, ELSS for growth. Balance gives you the best of both worlds!
Don't rush in March; use monthly SIPs for ELSS. Treat ELSS as a wealth builder, not just a 3-year tax saver. Consider overall asset allocation & mind liquidity needs before investing.
Ready to make informed decisions? Use our SIP, Goal, and Step-Up Calculators on sipplancalculator.in to map your investment journey. Don't just save tax, build wealth smartly!