ELSS vs PPF
A short thread...
ELSS (Equity Linked Savings Scheme) and public provident fund PPF, both help you save taxes, but apart from that, they differ on many parameters.
#ELSS #PPF #Taxsaving #investing #investingtips #mutualfunds #wealth
A short thread...
ELSS (Equity Linked Savings Scheme) and public provident fund PPF, both help you save taxes, but apart from that, they differ on many parameters.
#ELSS #PPF #Taxsaving #investing #investingtips #mutualfunds #wealth
In India, With both ELSS and PPF, you can get a maximum deduction of INR 1.5 Lakh under Section 80C of the Income Tax Act, 1961.
#WealthCreators #stockmarket #MoneyMatters
#WealthCreators #stockmarket #MoneyMatters
What are ELSS funds?
ELSS is d tax saving mutual fund which serves both d purpose of saving taxes & help U create long term wealth. ELSS funds generate returns by investing in equity & related instruments. This makes it a suitable investment option 4a person with LT goals.
ELSS is d tax saving mutual fund which serves both d purpose of saving taxes & help U create long term wealth. ELSS funds generate returns by investing in equity & related instruments. This makes it a suitable investment option 4a person with LT goals.
In #ELSS, U get a combination of the gain of 12-24% & above, with lowest lock-in period of 3 years. ELSS is the best investment option when compared to other options for #Taxsaving undr Sec 80C. Plus, u also get a diversified equity portfolio by investing as low as Rs 500/month.
What is Public Provident Fund (PPF)?
It's Govt of India backed debt asset, suitable for long terms financial goals such as children’s education & retirement planning. In PPF, U can claim tax deductions under sec. 80C upto Rs 1.5 lakh.
It's Govt of India backed debt asset, suitable for long terms financial goals such as children’s education & retirement planning. In PPF, U can claim tax deductions under sec. 80C upto Rs 1.5 lakh.
#PPF carries a longer lock-in period of 15 years which can further be extended for another 5 but, there is a facility of premature withdrawal from 6th year onwards.
#ELSS
Risk: High Riskbut can get high returns.
Returns: Market Linked.
Lock in Period:3 Years
Liquidity:High (withdrawal anytime after lock-in period)
Tax on Returns: Taxable (Gains up to INR 1,00,000 are tax exempted).
Premature Withdrawal: Not in lock-in period
Risk: High Riskbut can get high returns.
Returns: Market Linked.
Lock in Period:3 Years
Liquidity:High (withdrawal anytime after lock-in period)
Tax on Returns: Taxable (Gains up to INR 1,00,000 are tax exempted).
Premature Withdrawal: Not in lock-in period
Risk: Low/ No Riskbut returns are fixed.
Returns: Fixed rerutns.
Lock in Period: 15 Years
Liquidity: Low (Partial withdrawal after 5 years)
Tax on Returns: Non Taxable.
Premature Withdrawal: Partial withdrawal after 5 years.
Returns: Fixed rerutns.
Lock in Period: 15 Years
Liquidity: Low (Partial withdrawal after 5 years)
Tax on Returns: Non Taxable.
Premature Withdrawal: Partial withdrawal after 5 years.
Differences between ELSS and PPF:
PPF is low risk bcz it's backed by the GoI. Hence, they are a better option for highly risk-averse investors.
ELSS, invest in equity & related instru & makes better investment optn 4 those who are willing to risk volatility for long term gains.
PPF is low risk bcz it's backed by the GoI. Hence, they are a better option for highly risk-averse investors.
ELSS, invest in equity & related instru & makes better investment optn 4 those who are willing to risk volatility for long term gains.
Returns
The rate of interest on PPF investment is decided by the GoI with the present rate being 7.9%.
Returns on ELSS depend on market movements. The 3-year annualized historical returns on ELSS funds are 12-24% & above.
The rate of interest on PPF investment is decided by the GoI with the present rate being 7.9%.
Returns on ELSS depend on market movements. The 3-year annualized historical returns on ELSS funds are 12-24% & above.
Time Horizon
You can invest for 15 years in a PPF account with an additional extension of 5 more years.
In ELSS investment, there is no time horizon and you can continue with the investment as long as you wish.
You can invest for 15 years in a PPF account with an additional extension of 5 more years.
In ELSS investment, there is no time horizon and you can continue with the investment as long as you wish.
Offered Through
PPF is offered through banks & post office. To invest, U need to open PPF acc. + U can even open joint PPF account for & with a minor.
ELSS is managed by a fund manager & offered by the MF house. U can invest directly through online portals/Demat/ myself.
PPF is offered through banks & post office. To invest, U need to open PPF acc. + U can even open joint PPF account for & with a minor.
ELSS is managed by a fund manager & offered by the MF house. U can invest directly through online portals/Demat/ myself.
Contribution
In both PPF & ELSS contribution can be monthly/lumpsum.
In PPF, min investment amt is Rs 500 & max. Rs 1.5L for financial year.
In ELSS, monthly payments can be made by Systematic Investment Plans. In SIP u can start with Rs 500 & no upper limit for investment.
In both PPF & ELSS contribution can be monthly/lumpsum.
In PPF, min investment amt is Rs 500 & max. Rs 1.5L for financial year.
In ELSS, monthly payments can be made by Systematic Investment Plans. In SIP u can start with Rs 500 & no upper limit for investment.
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