PPF is highest safe, because PPF invests in government bonds. These bonds are backed by the Government of India. | ELSS are open-ended, diversified equity schemes. So it’s risky. |
Returns is fixed @7.1% anually. | Returns / Dividends are Market linked and not assured. You can expect average 17% or higher returns annually. |
Tax exemption category : EEE | Tax exemption category : EEE |
Tenure period is 15 years. You can also withdraw some amount from the PPF account after 5 full financial years. | Tenure period is 3 years. |
Maximum duration is 15 years. | There is no such limit in ELSS. |
You can invest minimum Rs.500 and maximum is Rs.1,50,000. | ELSS doesn’t have such limitation. the section 80C limit(1.5 L) will be applicable for claiming deductions. |
If you can't take risk then PPF investment is suitable for you. | If you can take risk and want to get more returns then you ELSS is best for you. |