PPF over Mutual funds? RBI data shows top choice for Indian investors
Live MintMutual fund vs PPF: Imagine that you have two options to invest your hard-earned money. In FY24, investors poured nearly ₹7.18 lakh crore into PPF, while mutual funds drew around ₹2.38 lakh crore—just one-third of the amount. In FY22, the total PPF investments in India stood at nearly ₹5.52 lakh crore, while mutual funds attracted approximately ₹1.16 lakh crore. “Investors generally prefer PPF to mutual funds because it guarantees them great safety, better returns and significant tax benefits. Many investors, especially those who are just nearing retirement or have minimal risk tolerance, would prefer an investment that offers the PPF as it focuses more on preserving the capital instead of expanding or growing the wealth,” according to Siddharth Maurya, founder and managing director of Vibhavangal Anukulakara Pvt Ltd. EEE Status The demand for PPF is high compared to a mutual fund, as it offers tax benefits.