I need to know whether I should invest in PPF or ELSS

Forums Tax Planning I need to know whether I should invest in PPF or ELSS

I need to know whether I should invest in PPF or ELSS

I have plans to invest for tax savings. I need to understand which option is better? I need good returns which are available from PPF but I am even interested in making ELSS mutual fund investments since they provide less of lock in period. Please suggest.

Profile photo of dhanashri Asked By: dhanashri 1 replies 0 helpful answers Last Updated: 8 months, 4 weeks ago
  • Profile photo of dhanashridhanashri
    Participant

    I have plans to invest for tax savings. I need to understand which option is better? I need good returns which are available from PPF but I am even interested in making ELSS mutual fund investments since they provide less of lock in period. Please suggest.

  • Profile photo of Madhuri N MarneMadhuri N Marne
    Moderator

    To invest in PPF or ELSS is a question where most of the people arise at. Investing in a fixed income product like PPF might restrict your returns. Due to inflation, your ROI is only 2-3% with PPF. Such low returns will prevent any major gains accruing over a long period of time.

    ELSS actively invests in the equity markets, with a potential to earn higher returns than traditional savings options like PPF.

    So the investment option depends upon what outcome do the investor wants:

    1. More returns in short span ( ELSS)
    2. OR, Safe investment with traditional plna ( PPF)

     

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