Drowning in tax-saving jargon? Understand ELSS and PPF to make the best choice for your ₹1.5 lakh under Section 80C. It's not just about tax, it's about building your financial future!
ELSS (Equity Linked Savings Scheme) invests in stock markets for potentially higher, market-linked returns. It has the shortest 3-year lock-in among 80C instruments. LTCG over ₹1 lakh taxed at 10%.
PPF (Public Provident Fund) is a government-backed, fixed-income scheme with guaranteed returns. It has a long 15-year lock-in period. Enjoys 'EEE' status: contributions, interest, & maturity are all tax-exempt.
For young investors (20s-30s) with a long-term horizon, ELSS offers significant wealth creation potential via equity exposure. Historically, it can deliver 12-14% CAGR. A powerful wealth multiplier!
PPF provides unparalleled capital safety, backed by the government. Ideal for risk-averse individuals, those nearing retirement, or for establishing a core, stable savings foundation with guaranteed returns.
Your best choice depends on your age (younger = more ELSS), risk appetite (low = PPF), and financial goals. A hybrid approach (e.g., ELSS for growth, PPF for stability) often works best.
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