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PPF vs SIP - When compared with ELSS funds or Equity Funds which is better option?  



Comparing PPF vs ELSS / Equity Funds or say PFF vs SIP Mutual Funds, which is better? I want to understand, PPF is good or SIP.

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Before coming to the point on PPF or SIP, Let me start with saying that ELSS is a type of Mutual Fund scheme while SIP is a mode of Mutual Fund Investment. Hope this clears the concepts of ELSS and SIP and the differences between both of them. In addition, let's now understand PPF vs SIP investment option will help of some of the comparison between them as shown below:

Equity Linked Savings Scheme - (ELSS Mutual Funds)Public Provident Account - (PPF) 
The returns in ELSS (Equity Linked Savings Scheme) Mutual Funds are higher as compared to other tax saving investment options available in the market. For example, the historical returns by ELSS Mutual Funds are approximately 12% -15%. Public Provident Account (PPF) is a long term investment saving scheme. At present 15 years is the maturity period and you can earn interest on your investment at around 8% - 9%. When compared PPF vs LIC scheme, PPF out-stand with its maturity value
The returns earned in case of ELSS investments are tax-free capital gains are also exempted from tax. Whereas, in case of tax savings Fixed Deposit (FD), tax is to be paid on the interest amount earned.Amount invested in PPF account is exempted from tax. Indeed, even the premium earned and maturity is likewise tax exempt. 
The lock-in period of ELSS Mutual Funds is just 3 years thereafter people can withdraw their entire investment amount any time.The base lock-in period is 7 years. Also, one can't withdraw the whole amount before maturity as well.
ELSS is much convenience in purchasing and redemption which is not that easy in other investments. People can invest and redeem their units through few clicks in online mode.PPF is not much convenience in purchasing and redemption. In case of PPF, Initially you will have to create your account and at the time of redemption, people need to visit the bank many times personally. 
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