Question
ELSS vs PPF vs NPS for 80C — which should I pick?
Answer
Bottom line: All three save tax under 80C (old regime), but they differ in risk, lock-in and returns.
1. ELSS
An equity fund with the shortest lock-in (3 years) and market-linked returns; gains are taxed as equity LTCG above ₹1.25 lakh.
2. PPF
A fixed-rate, 15-year, fully tax-free (EEE) government scheme — safest but least liquid.
3. NPS
A retirement product that also gives an extra ₹50,000 deduction under 80CCD(1B). These 80C benefits apply only under the old regime.
Compare tax savings with our 80C Deduction Optimiser.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.