Hello everyone, I’m trying to plan my long-term savings in India and can’t decide between PPF, ELSS and NPS. Over a 15-year period, which one usually gives the highest CAGR?
I asked the same question last year. Here is what i found.
15-Year CAGR Winner is ELSS
As from 2009 to 2024, ELSS funds gave around 12% a year. NPS with 50% equity gave about 9%. PPF gave 7.1 % fixed each year. One lakh rupees became roughly 5.5 lakh in ELSS, 3.9 lakh in NPS and 2.8 lakh in PPF.
Key points
- PPF: Government rate, set every quarter, 15-year lock, tax-free at exit.
- ELSS: At least 65 % in shares, 3-year lock, gains above ₹1 lakh taxed at 10 %.
- NPS: Equity cap at 75 %, locked till age 60, 60 % of the final money is taxed on exit.
Pick what suits you
- If you want the highest growth and can stay calm when markets fall choose ELSS.
- If you need a safe, fixed return with no worry go for PPF.
- If you want extra tax saving under 80CCD(1B) and are okay to wait till retirement then go for NPS.
15-Year Growth Comparison
| Plan | Asset Mix | Average 15-Year Return | ₹1 Lakh Becomes | Lock-In Period | Tax on Exit |
|---|---|---|---|---|---|
| PPF | 100 % Government Bonds | 7.1 % | ₹2.8 lakh | 15 years | No tax |
| NPS (50 % Equity) | 50 % Stocks + 50 % Bonds | 9 % | ₹3.9 lakh | Till age 60 | 60 % of corpus taxed |
| ELSS | 65-100 % Stocks | 12 % | ₹5.5 lakh | 3 years | 10 % on gains above ₹1 lakh |
If you’re investing in PPF (Public Provident Fund) or planning to start, this guide breaks down exactly how to calculate your PPF maturity amount. Super handy for understanding interest, lock-in, and how your contributions grow over time.