Which is better for your hard-earned money and your future? This isn't a one-size-fits-all answer, but about understanding what fits *your* financial journey.
HR emails are in, 80C choices loom. ELSS or PPF? We'll break down these two powerhouses for tax saving and wealth creation to help you make the right choice for your future.
Government-backed, virtually risk-free debt instrument. Offers stable, tax-free returns (currently 7.1%) with EEE status. Ideal for long-term safety, but has a 15-year lock-in.
Equity-linked funds for market-driven growth. Potential for 12-15%+ returns, with a mere 3-year lock-in – shortest for 80C. Largely EEE, designed for aggressive wealth creation.
PPF offers steady ~7-8% tax-free returns. ELSS, though market-linked, has historically delivered 14-16%+ over 5-7 years. Higher risk in ELSS, but also higher potential for wealth creation.
PPF locks funds for 15 years, ELSS for 3. Don't treat ELSS as short-term or fear market volatility if your horizon is long. A blend of both often creates a balanced portfolio.
It's not ELSS *vs* PPF, but ELSS *and* PPF, strategically used. Align with your goals & risk tolerance. Visualize growth: Use a SIP calculator! (Mutual funds subject to market risks. Consult an advisor.)