Updated: March 2026
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ELSS vs PPF vs NPS — Tax Saving Under 80C Compared
3 best 80C investments ranked: ELSS (3yr lock, 12-15%), PPF (15yr lock, 7.1% tax-free), NPS (60yr lock, 9-12% + extra 50K deduction).
ELSS Return
12-15%
PPF Return
7.1%
NPS Return
9-12%
80C Limit
₹1.5L
📊Tax Saving Investment Comparison
| Feature | ELSS (Mutual Fund) | PPF | NPS |
|---|---|---|---|
| Return | 12-15% (market-linked) | 7.1% (guaranteed) | 9-12% (market-linked) |
| Lock-in | 3 years (shortest) | 15 years | Till age 60 (longest) |
| Tax on maturity | 10% LTCG above ₹1.25L | 100% tax-free (EEE) | 60% tax-free, 40% annuity taxable |
| Extra deduction | No | No | ₹50,000 extra under 80CCD(1B) |
| Risk | Medium-High | Zero | Low-Medium |
| SIP option | Yes | Yes | Yes |
| Best for | Young, growth-seeking, short lock-in | Risk-averse, long-term guaranteed | Extra tax saving beyond ₹1.5L |
🎯Optimal Strategy
₹1.5 lakh 80C split: ₹75K in PPF (guaranteed base) + ₹75K in ELSS (growth).
Want extra deduction? Add ₹50K in NPS under 80CCD(1B) — this is ABOVE the ₹1.5L 80C limit. Total tax-saving investment: ₹2 lakh.
If under 35: Tilt toward ELSS (60-70%). If over 45: Tilt toward PPF (60-70%). NPS ₹50K is always worth it for the extra deduction regardless of age.
❓Frequently Asked Questions
Verify from official sources.