Trying to save on taxes? Let’s compare ELSS and PPF and see which one makes more sense for you.

What’s ELSS?

ELSS stands for Equity-Linked Saving Scheme.

It’s a mutual fund that helps you save tax while growing your money in the stock market.

Lock-in: 3 years Tax benefit: Up to ₹1.5 lakh under 80C

What’s PPF?

PPF or Public Provident Fund is a super safe, government-backed savings plan.

It’s great for long-term saving and offers steady interest.

Lock-in: 15 years Tax-free returns + 80C benefit

ELSS can give higher returns — around 10-15% if markets do well.

PPF gives fixed returns — usually 7-8%.

If you're aiming for growth, ELSS may be better. For safety, go with PPF.

Lock-In Period Matters

ELSS has just a 3-year lock-in, one of the shortest among 80C options.

PPF, on the other hand, locks your money for 15 years.

So, if liquidity is important to you, ELSS scores a point.

What About Taxes?

PPF is completely tax-free. That’s right no tax at all on interest or maturity.

ELSS offers tax benefits, but gains exceeding ₹1 lakh are taxed at 10%.

So, PPF wins the tax game if you’re all about peace of mind.

How Risky Are They?

PPF is risk-free — the government backs your money.

ELSS is linked to the stock market, so there's some risk, but also a chance for higher rewards.

Pick what matches your comfort level.

ELSS - Who’s It For?

Young professionals

People with a higher risk appetite

Those who want better returns and don’t mind a little market ride

If you’re building wealth and saving tax, ELSS is a smart choice.

PPF — Who’s It For?

Risk-averse investors

People planning for retirement

Anyone who wants guaranteed, tax-free savings

If you’re into safety and long-term planning, PPF won’t disappoint.

Both ELSS and PPF are great tax-saving tools, just made for different goals.

Want growth + short lock-in? Go for ELSS.

Want safety + long-term wealth? PPF is your friend.

What is ELSS mutual funds?

What Is a Loan Against PPF and How Does It Work?

SIP vs PPF: Key Differences