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Factors
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ELSS
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PPF
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Investment
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ELSS is an equity mutual funds which invests primarily in shares or shares related investments
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PPF is an investment vehicle which is like fixed deposit for long term period (15 years). One can invest monthly, quarterly or lump sum etc.
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Returns
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The returns in ELSS is not fixed and is completely dependent on equity market’s performance.
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The returns obtained are fixed. The present rate of interest is 8.7% compounded annually. However, the rate of interest can change any time as per government policies.
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Risk
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There is no guarantee of principle safety in ELSS. However, equity investments generally give positive returns in long-term. As per our research, BSE SENSEX has delivered an annual return of 12.78% in past 10 years.
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It’s government sponsored scheme and it’s completely safe.
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Liquidity
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Amount Invested in ELSS can be withdrawn any time after 3 years.
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PPF have very low liquidity. One can withdraw certain amount after 7th year from PPF account, but overall it’s a scheme for long term investment only.
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Tenure
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The tenure ranges from three years till any time period as per the choice of investor
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The minimum tenure is 15 years which can be increased further in a block of 3 years.
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Lock in period
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There is lock-in period of 3 years.
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The lock-in period in PPF is 15 years. One can’t close PPF before the completion of full 15 years.
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Online transaction
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ELSS can be done Online. An investor can invest or sell ELSS fund any time
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For PPF, some banks have started giving online facility. However, first-time investor has to visit the bank and do the initial registration by submitting documents.
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