Question 1

PPF vs mutual fund - which gives better returns?

Accepted Answer

Over long periods (15+ years), equity mutual funds have historically given 12-15% CAGR vs PPF's 7.1% fixed rate. However, MF returns are not guaranteed and carry market risk, while PPF is guaranteed by the government. Post-tax, MF still tends to outperform at high return assumptions.

Question 2

Is PPF fully tax-free?

Accepted Answer

Yes. PPF has EEE (Exempt-Exempt-Exempt) status: contributions are exempt under 80C, interest earned is tax-free, and maturity amount is tax-free. This is a significant advantage over mutual funds which are subject to LTCG tax on gains.

Question 3

Can I invest more than Rs 1.5L in PPF?

Accepted Answer

No. The maximum annual limit for PPF is Rs 1,50,000. This calculator is capped at Rs 1,50,000 annual investment for PPF. For mutual fund investment, you can invest as much as you want.

Question 4

What is the PPF interest rate currently?

Accepted Answer

The current PPF interest rate is 7.1% per annum (as of Q1 FY 2025-26). The government revises this quarterly. You can change the PPF rate in this calculator to model different scenarios.

Question 5

Should I choose PPF or ELSS?

Accepted Answer

Both qualify for 80C deduction. ELSS has a 3-year lock-in vs PPF's 15 years. ELSS has higher return potential but market risk. PPF has guaranteed returns and full tax-free maturity. For investors comfortable with risk and a 5+ year view, ELSS typically outperforms PPF significantly.

PPF vs Mutual Fund Calculator

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