NPS vs PPF vs ELSS
Compare tax-saving investments with accurate 2024-25 rules.
Your Profile
₹
Tax Settings
Comparison after 30 years
NPSLow risk
₹2,62,12,241
Net after tax
Invested₹45,00,000
Tax saved/year₹60,000
Lock-inTill 60
PPFZero risk
₹1,52,68,957
Net after tax
Invested₹45,00,000
Tax saved/year₹45,000
Lock-in15 years
ELSSHigh risk
₹3,91,86,557
Net after tax
Invested₹45,00,000
Tax saved/year₹45,000
Lock-in3 years
💡 Recommendation
A balanced mix of all three gives diversification: PPF for safety, ELSS for growth, NPS for extra tax benefit.
📈
Best Returns
ELSS
🛡️
Safest
PPF
💧
Most Liquid
ELSS
💰
Max Tax Benefit
NPS
Suggested Allocation for You
NPS 33%
PPF 33%
ELSS 34%
Quick Reference (2024-25)
NPS
- • 80C + extra ₹50K (80CCD1B)
- • 60% lump sum tax-free
- • Lock-in till 60
PPF
- • 80C (max ₹1.5L/year)
- • 100% tax-free (EEE)
- • 7.1% current rate
ELSS
- • 80C (no limit on invest)
- • LTCG 12.5% above ₹1.25L
- • Only 3 years lock-in
Tax-Saving Investments Compared
NPS, PPF, and ELSS are the three most popular tax-saving investments under Section 80C. Each has different risk-return profiles, lock-in periods, and tax treatments.
Key Question: Which one should you choose? The answer depends on your age, risk appetite, and financial goals.
Quick Comparison
🏛️ PPF
• Returns: 7.1% (fixed)
• Lock-in: 15 years
• Risk: Zero
• Tax: EEE
• Best for: Safety
🏢 NPS
• Returns: 9-12%
• Lock-in: Till 60
• Risk: Low-Medium
• Tax: EET
• Best for: Retirement
📈 ELSS
• Returns: 12-15%
• Lock-in: 3 years
• Risk: High
• Tax: EEE
• Best for: Growth
Which One Should You Choose?
Choose PPF if:
- • You want guaranteed returns with zero risk
- • You're risk-averse or nearing retirement
- • You want tax-free returns (EEE status)
- • You can commit for 15 years
Choose NPS if:
- • You're planning for retirement (age 25-45)
- • You want extra ₹50K deduction (80CCD(1B))
- • You can handle moderate risk
- • You want professional fund management
Choose ELSS if:
- • You're young (20-40) with long investment horizon
- • You want highest potential returns
- • You can handle market volatility
- • You want shortest lock-in (3 years)
💡 Smart Strategy: Don't Choose One!
Diversify across all three for optimal tax-saving:
- • ₹50K in PPF: Safe, guaranteed returns
- • ₹50K in NPS: Extra tax benefit + retirement corpus
- • ₹50K in ELSS: High growth potential
This gives you ₹1.5L deduction under 80C + ₹50K under 80CCD(1B) = ₹2L total tax savings!