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Equity Linked Saving Scheme (ELSS) is an open-ended equity mutual fund that offers investors the dual benefits of tax-saving and income growth.<br>These open-ended mutual funds invest primarily in the stock market. This type of mutual fund has a lock in period of 3 years from the date of investment.<br>Public Provident Fund (PPF) scheme was introduced in India in 1968 to mobilize small savings. The scheme offers an investment avenue with decent returns coupled with income tax benefits.<br>A PPF account can be opened with a Post Office or with specific banks.<br>This presentation will show you the difference between the ELSS(https://www.edelweiss.in/oyo/mutualfund/tax-savers-elss-funds-63) & PPF.
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Introduction Equity Linked Saving Scheme (ELSS) is an open-ended equity mutual fund that offers investors the dual benefits of tax-saving and income growth. These open-ended mutual funds invest primarily in the stock market. This type of mutual fund has a lock in period of 3 years from the date of investment. Public Provident Fund (PPF) scheme was introduced in India in 1968 to mobilize small savings. The scheme offers an investment avenue with decent returns coupled with income tax benefits. A PPF account can be opened with a Post Office or with specific banks.
Conclusion From the table above, it can be seen that a PPF investment is relatively safer option but, offers lower returns and longer time horizon as compared to ELSS. The tax benefits are more in favour of PPF, however, ELSS certainly is an option for better returns (provided you have the appetite for market volatility). Now the ultimate choice depends on you, your risk-taking ability, your time horizon and your long-term plan for wealth creation. Make the choice now!