ELSS vs PPF English


The main difference between ELSS (Equity Linked Savings Scheme) and PPF (Public Provident Fund) is that ELSS is a market-linked investment, offering potentially higher returns with more risk and has tax-saving benefits, while PPF provides fixed, risk-free returns, tax exemptions, and a longer lock-in period.


ELSS Meaning

Equity Linked Savings Scheme (ELSS) is a type of mutual fund investment in India that primarily invests in equities, with tax benefits under Section 80C of the Income Tax Act. It offers potential high returns, has a three-year lock-in period, and carries market-related risks.

ELSS, or Equity Linked Savings Scheme, is a mutual fund that invests predominantly in the stock market. It’s a popular choice for investors seeking growth through equity exposure alongside tax-saving benefits.

These schemes have a minimum lock-in period of three years, the shortest among tax-saving options under Section 80C. However, being equity-oriented, ELSS funds carry higher risk compared to other tax-saving investments like PPFs or FDs.

For example: If you invest Rs 50,000 in an ELSS fund, this amount is deductible from your taxable income under Section 80C. The investment, subject to market risks, has potential for growth over three years.