ELSS vs PPF

Tue, 12 May 2026 00:00:00 +0000

Equity Linked Savings Scheme (ELSS) and Public Provident Fund (PPF) are among the most widely used instruments for claiming the Section 80C deduction under the Income Tax Act, 1961. Both allow an investor to claim a deduction of up to Rs 1,50,000 per financial year. They differ fundamentally in their nature, risk profile, return mechanism, liquidity, and regulatory framework.

ELSS is a category of equity-oriented mutual fund regulated by the Securities and Exchange Board of India , while PPF is a government-backed small savings scheme administered by the Ministry of Finance under the Public Provident Fund Act, 1968 (since subsumed into the Government Savings Banks Act, 1873, as amended).

Ministry of Finance on WebNotes

ELSS vs PPF