PPF vs Mutual Funds: Which is better? Here is what will make more money for you at a faster rate
PPF vs Mutual Funds: Public Provident Fund (PPF) and mutual fund investments are long-term investment tools. However, PPF is completely a debt-instrument and risk-free investment while mutual funds are market-linked.

PPF vs Mutual Funds: Public Provident Fund (PPF) and mutual fund investments are long-term investment tools. However, PPF is completely a debt-instrument and risk-free investment while mutual funds are market-linked and hence 'mutual fund investments are subject to market risk.' According to experts, 'mutual fund sahi hai' holds well for those investors who have a high risk appetite while PPF is a suitable investment tool for an investor who has low risk appetite.
Speaking on PPF vs Mutual Funds; Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "Both PPF and Mutual Funds are two different sets of investment tools but one should have a diversified portfolio where one must have a PPF account too. How much a person should invest in PPF and mutual funds depends upon the risk appetite of the investor. If the investor has a higher risk appetite, then mutual funds are a better money making tool for such investors. But, even when the risk appetite of the investor is high, investment in PPF is a must for getting assured returns."
SEBI registered tax and investment expert, Jitendra Solanki said, "For long-term investment mutual funds are better than PPF as in the long-term mutual fund investments would yield at least 12 per cent return on one's investment while the PPF interest rate is decided quarterly by the center." Currently, PPF interest rate is 7.1 per cent.
WATCH | Zee Business Live TV streaming below:
However, Kartik Jhaveri said that PPF is income tax exempted while mutual funds incur long term capital gains tax. He said that PPF investment falls under EEE category, and hence one's investment up to Rs 1.5 lakh in a particular financial year is income tax exempted and the interest as well as maturity amount are also tax exempted. So, if the market behaves topsy-turvy in the last few years of the mutual fund investment, in that case PPF investment would be a healer for investors as it's free from market risk.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

LIC Saral Pension Plan: How to get Rs 64,000 annual pension on Rs 10 lakh one-time investment in this annuity scheme that everyone is talking about

Gratuity Calculation: What will be your gratuity on Rs 45,000 last-drawn basic salary for 6 years & 9 months of service?

Rs 1,500 Monthly SIP for 20 Years vs Rs 15,000 Monthly SIP for 5 Years: Know which one can give you higher returns in long term

Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible

SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme

Monthly Pension Calculations: Is your basic pension Rs 26,000, Rs 38,000, or Rs 47,000? Know what can be your total pension as per latest DR rates
07:55 AM IST