Difference Between ELSS and PPF

Equity Linked Savings Scheme (ELSS) and Public Provident Fund (PPF) are two such schemes that generate high returns and also offer income tax benefits.
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Difference between ELSS and PPF.

1. Which is better ELSS or PPF?
2. Can I invest in both PPF and ELSS?
3. Is ELSS taxable after 3 years?
4. Why is PPF not good?
5. Which PPF is best?
6. Which ELSS is best to invest in 2020?
7. How can I earn 50 lakhs in 15 years?
8. What is the risk in ELSS?
9. What is ELSS interest rate?

Which is better ELSS or PPF?

You can invest as much as you want. However, under Section 80C of the Income Tax Act, only ₹150,000 in a financial year is deductable. From the table above, you can see that a PPF investment is a relatively safer option. However, PPF offers much lower returns over a longer time horizon than ELSS.

Can I invest in both PPF and ELSS?

Mode of investment: It is very convenient to invest in both PPF and ELSS. In case of ELSS, one can invest in lumpsum as well as through systematic investment plans (SIPs). Similarly, one can invest lumpsum as well invest in maximum 12 installments in a financial year in PPF.

Is ELSS taxable after 3 years?

The Long-Term Capital Gains on ELSS are tax-exempt up to Rs 1 lakh, and dividend received is tax-free in the hands of investors. You can continue to invest in this scheme even after the completion of the lock-in period of three years.

Why is PPF not good?

One major disadvantage of PPF is that electronic means of encashing or using technology is not available. Reasons why you should invest in PPF now: 1. Offers high-interest rates – Currently, PPF offers interest rates at 7.1 per cent, which is higher compared to interest rates offered by banks on their FDs.

Which PPF is best?

• SBI PPF Account. SBI PPF is a government-regulated PPF account scheme, which is distributed through SBI branches.SBI PPF deposits allow a maximum limit of ₹ 1.50 Lakh per annum, for a maximum tenure of 15 years. ...
• ICICI PPF Account. ...
• HDFC Bank PPF Account. ...
• India Post Office PPF Account.

Which ELSS is best to invest in 2020?

Basis this parameter, these are the seven best ELSS mutual funds hand-picked by us:

• Axis Long Term Equity Fund.
• Invesco India Tax Plan.
• DSP Tax Saver.
• Kotak Tax Saver Fund.
• Mirae Tax Saver Fund.
• Canara Robeco Equity Tax Saver Fund.
• Motilal Oswal Long Term Equity Fund.
• The Bottom line:

How can I earn 50 lakhs in 15 years?

Assuming an annual return of 12 per cent, your monthly investments of Rs 2,000 would help you to create a corpus of around Rs 10 lakh in 15 years. You must increase your monthly investment every year in line with your salary increase.

What is the risk in ELSS?

Although ELSS funds have the highest potential to generate returns when compared with other tax-saving products, these returns come with an element of risk. This is because equity is considered to be a risky asset class exposed to volatility and market fluctuations.

What is ELSS interest rate?

Some ELSS plans have been known to offer returns at the rate of 25 to 30%, which when compared to the 8.8% returns of NSCs can seem very enticing. Similarly, the investment period can be critical while deciding which scheme to choose, with ELSS investments having a 3 year lock in period, compared to 6 years for NSCs.