For most of you year end investments aren’t necessarily thought through. If they are, great. If you’ve been investing, chances are they’re probably still the more traditional investments like PPF.

Let’s talk taxes, for starters. With both Tax-Saving funds (ELSS) and PPF, you can get a maximum deduction of INR 1.5 Lakh under Section 80C of the Income Tax Act, 1961.

Nothing wrong with PPF per se, except Public Provident Fund investments aren’t what they used to be, with the rate of return sitting between 7-8% as opposed to the 12% your father probably invested in. If the return doesn’t interest you, maybe it’s time you took some interest in your own money.

Top rated Tax-Saving Funds, more commonly known as Equity Linked Savings Scheme (ELSS – as you graduate from a novice investor to a slightly more seasoned one) are known to have given an annualised 3 Year return(s) ranging between – 9% to 17%.

Tax Saving funds or ELSS funds have a shorter lock-in period of 3 years that makes sure you can exit as and when you need to after the 3 years versus a minimum of a 15-year lock-in with PPF.

If you decide to invest in ELSS, you can do it via an SIP (Systematic Investment Plan) or monthly payments, in which you can start by investing as low as INR 100 with no upper limit of investment, or you can invest in lump-sum. We’d recommend going more planned but you’ll need to decide basis what works best for you.

Here’s a detailed comparison between ELSS and PPF, which will help you make an informed investment decision:

Freecharge Mutual Funds Vs PPF

Now you can invest in tax-saving Mutual Funds (ELSS) directly on the Freecharge App.

Check out Mutual Funds on Freecharge here.

*Available only on Android. Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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