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✓ Updated March 2026 · FY 2025-26

ELSS vs PPF vs NPS
80C Comparison

Live 3-way corpus calculator for India's top 80C instruments. Compare returns, lock-in, liquidity and get the optimal allocation strategy for your tax slab.

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📋 Investment Parameters
Amount₹12,500
₹500₹75K₹1.5L
Tenure20 yrs
5 yrs20 yrs35 yrs
ELSS Return13%
8%13% hist20%
ℹ️ PPF: 7.1% EEE. NPS: 10% CAGR, 60% maturity tax-free (annuity from rest). ELSS: 3-yr lock-in, LTCG @12.5% above ₹1.25L.
📈 ELSS
₹1.2 Cr
Net corpus
🏛️ PPF
₹64 L
EEE — Tax-Free
📊 NPS
₹86 L
60% tax-free
📊 Corpus Comparison
📋 ELSS vs PPF vs NPS
FactorELSSPPFNPS
Lock-in Period3 years15 yearsTill 60 years
Expected Return12–15% CAGR7.1% (guaranteed)10–12% CAGR
Tax on ReturnsLTCG 12.5% >₹1.25LEEE — 100% tax-free60% tax-free, 40% annuity
80C DeductionYes (up to ₹1.5L)Yes (up to ₹1.5L)Yes + extra ₹50K (80CCD 1B)
LiquidityHigh (3-yr)Low (15-yr)Very Low (till 60)
Risk LevelModerate-HighZeroModerate
Tax Benefit (30% slab)₹46,800/yr (80C)₹46,800/yr (80C)₹46,800 + ₹15,600 = ₹62,400
Best ForWealth creation + 80CGuaranteed safe debt portionRetirement + max tax saving
💡 THE OPTIMAL 80C ALLOCATION STRATEGY
✓ Use ELSS for all ₹1.5L of 80C investment if you have 7+ year horizon and can handle volatility — highest returns.
✓ Add NPS ₹50,000 via 80CCD(1B) for the EXTRA deduction beyond 80C limit — saves ₹15,600 additional tax at 30%.
✓ Use PPF as guaranteed debt outside the 80C investment — not as primary 80C vehicle if returns matter.
The trifecta: ELSS (₹1.5L) + NPS extra (₹50K) + PPF as FD replacement = optimal tax + wealth strategy.
🔗 Related
📊 PPF vs ELSS
Detailed PPF vs ELSS analysis
🏛️ NPS vs PPF
Retirement corpus comparison
🧾 80C Optimizer
Maximize your 80C deductions
📊 NPS Calculator
Project your NPS corpus

ELSS vs PPF vs NPS — Which 80C Investment Wins?

ELSS, PPF and NPS are the three most powerful 80C tax-saving instruments in India. Each has a distinct risk-return-liquidity profile. The winner depends entirely on your time horizon, risk appetite and how much you value liquidity vs tax efficiency.

Can I invest in all three — ELSS, PPF and NPS together?+

Yes, and this is actually the optimal strategy for most 30% slab investors. Use ELSS for the ₹1.5L 80C limit (highest returns). Invest ₹50K additionally in NPS for the extra 80CCD(1B) deduction. Use PPF for the safe, guaranteed debt component. This maximises both tax savings and long-term wealth.

NPS vs PPF — which is better for retirement?+

NPS wins for retirement on returns (equity exposure generates higher CAGR) and tax saving (extra ₹50K deduction). PPF wins on complete EEE tax-free status and liquidity after 5 years. For a pure retirement focus, NPS + ELSS beats PPF mathematically. But PPF offers unmatched capital safety.

What happens to NPS money at maturity?+

At 60 years, you must use at least 40% of your NPS corpus to buy an annuity (regular monthly pension — taxable). The remaining 60% is tax-free lump sum. If corpus is below ₹5 lakhs, 100% can be withdrawn tax-free.

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