PPF vs ELSS Scheme: Nowadays there are many types of investment options in the market. Every sensible person starts looking for investment options as soon as he gets a job. The biggest advantage of this is that not only does your savings happen, along with this you also get the benefit of tax exemption. Today we are going to give you information about two such schemes, by investing in which you can take advantage of strong returns as well as tax saving.
These schemes are Public Provident Fund and Equity Linked Saving Scheme-ELSS Saving Scheme of Mutual Funds. On investing in both these schemes, a tax exemption of Rs 1.5 lakh is available annually under Section 80C of Income Tax. In such a situation, the biggest question is, where does one get more return on the benefit of tax exemption in both. Let’s know about this.
Which scheme has more risk-
It is worth noting that Public Provident Fund Details is a scheme run by the government. Under this scheme, you can open your account in any bank or post office. In this, your money is 100% safe because it is guaranteed by the government. On the other hand, talk about ELSS scheme, it is an equity-linked mutual fund scheme. It depends on the market risk. In such a situation, if you want to invest in an investment scheme dependent on market risk, then ELSS scheme is a great option for you.
Know where you are getting more returns
Let us tell you that the interest rate of Public Provident Fund is decided by the government. At present, under this scheme, investors are getting returns on the basis of compounding annually at an interest rate of 7.1%. Whereas ELSS is a mutual fund scheme that invests your money in equities. Its return depends on the market. Although the returns are not fixed in this, but talk about the last few years, the investors of ELSS have got returns ranging from 12% to 14%. In such a situation, if you want to get maximum returns with little market risk, then you can bring money in ELSS scheme.
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How much can you invest
Talking about investing in PPF schemes, you can invest up to a maximum of Rs 1.5 lakh in a lump sum or 12 installments. The minimum investment limit in this is Rs 500. On the other hand, you can invest as much as you want in ELSS. You can invest in this limit according to your need.
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