Can I invest ₹ 1.5 lakh each in PPF and Sukanya Samridhi Scheme?

- Rishi Dev, Rewari

Equity-linked saving scheme (ELSS) is better compared to PPF. First, invest in an ELSS if you have taxable income. One important point of financial planning is wealth creation. Even if the objective is to save for tax planning, we need to optimise our return using our limited resources. Hence, I feel ELSS is superior to PPF.

ELSS is a product that is transparent, tax efficient, and well-regulated. It comes with just a three-year lock-in period. ELSS is delivering around 14 per cent per annum return over a 3–5 year period as compared to PPF delivering a 7.8 per cent return. Hence, I advise you to
invest in any good ELSS fund. Although it carries market risks, over a period of 3–4 years it can deliver over double-digit returns.

As far as your query regarding Sukanya Samriddhi Yojana is concerned, it is a deposit scheme of the government for a girl child (under 10 years) with maturity at the age of 21. It delivers 8.6 per cent per annum as return and is tax free.The minimum investment amount is ₹1,000, while the maximum investment amount ₹1, 50,000.

- A K Narayan, Founder, A K Narayan Associates