three ways to save for the long run. compared, not conflated.
assumptions
growth chart · same ₹/year, different vehicles
PPF (guaranteed, tax-free)NPS (market-linked, partial tax)ELSS (equity, LTCG after 12.5%)
who wins for whom
PPF — predictable, sovereign-backed, fully tax-free. Pick when you want guaranteed corpus you can count on, don't want market risk. NPS — market returns + extra ₹50K deduction. Pick when you're okay with 60% lump sum / 40% annuity at 60, want lower cost than mutual funds. ELSS — shortest lock-in (3 years), highest expected returns, most flexible. Pick when you want liquidity after 3 years and believe in equity long-term. boring truth: most people should do all three in layers — PPF (safety) + NPS (tax + annuity floor) + ELSS (growth + liquidity).
PPF: 7.1% rate notified quarterly. 15-year lock-in (5-yr extensions). ₹1.5L/yr cap, tax-free returns, 80C benefit — EEE.
NPS: auto/active choice asset allocation. Avg 10–12% with 75% equity. Extra ₹50K under 80CCD(1B). At 60: 60% lump-sum tax-free, 40% must buy annuity (taxable).
ELSS: equity mutual fund, 3-year lock-in, 80C benefit. Long-term avg 12–14%. LTCG 12.5% on gains above ₹1.25L/year.
this tool assumes all three post-FY26 rules; verify for your slab/age.