PPF vs ELSS: where should you invest for tax saving?

Both PPF and ELSS qualify for the 80C deduction, but they are very different tools.

PPF: safety first

Government-backed, fixed returns, fully tax-free, with a fifteen-year lock-in. Perfect for the safe, long-term part of your portfolio.

ELSS: growth potential

An equity mutual fund with just a three-year lock-in, the shortest among 80C options. Returns are market-linked, so higher potential but with risk.

Many people use both: PPF for stability and ELSS for growth. Your mix should match your risk comfort and time horizon.