PPF Calculator

Calculate your PPF return know how much PPF return you will get

The current interest rate effective from 1 July 2020 is 7.1% Per Annum (compounded annually).

What are ELSS Funds


ELSS is a tax-advantaged mutual fund that helps you save money on taxes while also building long-term wealth. ELSS funds invest mainly in equity and equity-related instruments to maximise returns. As a result, it's a good investment for those with long-term ambitions. ELSS is the best investment choice as compared to other alternatives with tax deductions under Section 80C of the Income Tax Act, 1961, since it combines the maximum benefit of 12 percent and above with the shortest lock-in duration of 3 years.Plus, by investing as little as INR 500 per month, you can build a diversified equity portfolio. ELSS is a tax-advantaged mutual fund that helps people save money on their taxes.


What is PPF Investment

PPF is a debt instrument backed by the Indian government that can be used to fund long-term financial priorities such as children's education and retirement planning. Tax deductions of up to Rs 1.5 lakh can be claimed on PPF investments under section 80C. PPF has a longer lock-in term of 15 years, which can be extended for another 5 years, but there is an option to exit early starting in the 6th year. You can also take out a loan against your PPF account, which is valid from the third to the sixth financial year. The loan sum is set at 25% of the unpaid balance from the previous two years, with a 36-month repayment period. It should be remembered, however, that the interest paid is 2% higher than the current interest rate.


ELSS vs PPF

These are the below difference between ELSS and PPF

1.Risk


Since it is funded by the Indian government, investing in the Public Provident Fund (PPF) is low-risk. As a result, they are a better investment choice for those who are extremely risk averse. ELSS funds, on the other hand, invest in stock and equity-related securities and are subject to market risks, making them a safer investment choice for those willing to take on uncertainty in exchange for long-term returns.


2 Lock in Period


PPF investments have a 15-year lock-in term, with the option of making a partial withdrawal after 5 years. The lock-in period for equity related savings schemes, or ELSS, is just three years. You can, however, retain the investment for a longer period of time.


3. Returns


The rate of interest on PPF investments is set by the Indian government, with the current rate of 7.9%. The returns on ELSS are subject to market fluctuations. ELSS funds have historically delivered annualised returns of 12 percent or more over three years.


4. Time Horizon


In a PPF account, you can invest for 15 years, with a 5-year extension option. There is no time limit on ELSS investments, so you can keep investing for as long as you want.