ELSS vs PPF: ₹1.5 Lakh Tax Saving Dilemma?

Decoding the best choice for your Section 80C investments.

Risk vs. Safety: The Big Divide

PPF offers guaranteed, government-backed returns (currently ~7.1%). ELSS is market-linked equity, higher risk for potentially higher growth.

Where Does Your Money Grow?

PPF (7.1% avg) yields ~₹40.68L over 15 yrs (tax-free). ELSS (14% avg) could reach ~₹66.6L! Equity potential vs. fixed income certainty.

Accessing Your Funds: Lock-in

ELSS has the shortest 80C lock-in: just 3 years. PPF demands a 15-year commitment, with partial withdrawals after 7 years.

Tax on Gains: EEE vs. LTCG

PPF enjoys EEE status: investment, interest, and maturity are all tax-exempt. ELSS gains over ₹1L are taxed at 10% LTCG.

Avoid These Tax-Saving Pitfalls

Don't just save tax; align with goals. Avoid timing ELSS (use SIP). Understand PPF's long lock-in. Consider diversifying with both!

Your Best Choice Depends On You!

Risk appetite, goals, and horizon define your ideal choice. Ready to plan? Use our SIP & Step-Up Calculators on sipplancalculator.in!