PPF vs ELSS — Which is Better in 2026?
Category: SIP & Mutual Funds · Published 2026-03-10 · by Priyanka
Quick comparison
| Feature | PPF | ELSS |
|---|---|---|
| Risk | Zero | Equity market risk |
| Return (2026) | 7.1% tax-free | ~12% (past 10 yr avg) |
| Lock-in | 15 yrs (5 yr partial) | 3 yrs |
| Tax on gain | Fully exempt (EEE) | LTCG 12.5% above ₹1.25L |
| 80C (old regime) | Yes | Yes |
Who should pick PPF
- Retirees / risk-averse investors.
- Long-term goals >15 yrs where you don't need liquidity.
Who should pick ELSS
- 25-45 age salary earners with 10+ year goals.
- Anyone wanting higher returns for similar tax benefit.
Many people do 50:50 PPF + ELSS.
Frequently Asked Questions
Can I invest in both PPF and ELSS?
Yes — the ₹1.5 lakh 80C cap is combined across both, but you can freely split.
Which gives better return — PPF or ELSS?
Historically ELSS over 10+ years has beaten PPF by 3–5% CAGR, but ELSS is market-linked and can fall in the short term.
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