Creative: Since, I am planning to start investing, can you please tell me, what is better, PPF or ELSS?
Answer: Public provident Fund (PPF) is a popular scheme with long term investment option available backed by Government of India which offers safety with attractive interest rate and returns that are fully exempted from tax & ELSS is Equity Linked Savings Scheme offers you an opportunity to gain from the potential of Indian equity markets and at the same time provides you tax benefits too. ELSS comes with more benefits like being a diversified equity Mutual Fund (MF), it offers tax-exemption under section 80C of the Income Tax Act and rate of return is generally 14-16%. There are benefits of capital appreciation along with tax benefits that can be availed by any investor. Other than this, the lock-in period of ELSS is of 3 years where PPF matures in 15 years. Have more queries? Feel free to write to us.
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