PPF vs Mutual Fund Calculator
Compare PPF and mutual fund returns side by side, including 80C tax savings and LTCG tax, to see which builds more wealth over your chosen period.
PPF allows up to Rs 1,50,000 per year.
PPF has a mandatory 15-year lock-in.
Current PPF rate is 7.1% p.a. (Q1 2025). The government revises this quarterly.
Your Tax Slab
PPF Maturity
₹40.68 L
PPF Tax Saved (80C)
₹6.75 L
PPF Net Value
₹47.43 L
MF Maturity
₹63.07 L
MF LTCG Tax
₹4.92 L
MF Net Value
₹64.91 L
Better option
Mutual Fund gives better post-tax returns in this scenario.
Difference: ₹17.47 L more in MF after 15 years.
Results shown are estimates based on assumed annual returns and are for illustrative purposes only. Actual returns will vary.
PPF vs Mutual Fund: how to compare
Comparing PPF and equity mutual funds is one of the most common financial questions in India. PPF gives 7.1% (current rate) tax-free with sovereign safety; equity mutual funds give market-linked returns (historically 10-12%) but with volatility and capital-gains tax on exit. This calculator runs both scenarios side by side: same yearly investment, same horizon. It includes 80C tax savings, the LTCG impact on equity, and PPF's EEE tax-free status, so you compare apples to apples on after-tax terms.
How to use the PPF vs Mutual Fund Calculator
- Enter the yearly investment. Same amount for PPF and equity, up to ₹1.5 lakh for full 80C and PPF cap.
- Set the tenure. 15 years (full PPF term) is the natural comparison.
- Confirm PPF rate. Currently 7.1% per annum (April-June 2026).
- Set the expected equity return. 12% as a reasonable long-term equity assumption.
- Review the after-tax comparison. See PPF maturity (tax-free) vs equity MF maturity post-LTCG and the gap.
When to choose PPF vs Mutual Fund
- Choose PPF if: you want zero risk, are happy with 7% real, and value tax-free EEE status.
- Choose equity MF if: your horizon is 7+ years and you can handle volatility for higher returns.
- Old regime? PPF gives 80C deduction on the way in; ELSS mutual fund also qualifies for 80C.
- New regime? The 80C benefit is gone for both. Compare post-tax pure returns.
- Many investors use both. PPF as a safe base layer, equity for long-term growth.
₹1,50,000/year for 15 years: PPF vs Equity MF
| Scenario | Maturity (pre-tax) | After-tax |
|---|---|---|
| PPF at 7.1% | ₹40.7 lakh | ₹40.7 lakh (tax-free) |
| Equity MF at 10% | ₹52.3 lakh | ≈ ₹48.5 lakh |
| Equity MF at 12% | ₹62.5 lakh | ≈ ₹57.5 lakh |
| Equity MF at 14% | ₹74.5 lakh | ≈ ₹68 lakh |
Illustrative. PPF is fully tax-free. Equity MF after-tax assumes 12.5% LTCG on gains above ₹1.25 lakh exemption per year. Use the calculator above for exact comparison.