Where Should I Invest?
PPF vs NPS vs Mutual Fund vs FD — compare after-tax, after-inflation returns side by side
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026
Assumptions (tweak freely)
For your inputs
Equity Mutual Fund leaves you with the most — about ₹26.08L in today's money, ~₹13.71L more than Fixed Deposit.
You'd invest ₹24,00,000 over 20 years. Figures below are after tax and after 6% inflation — the money you'd actually keep, in today's value. Equity carries market risk; PPF/FD are safe but grow slower.
Equity Mutual Fund
TOP- Nominal corpus
- ₹91.99L
- After tax
- ₹83.64L
- Lock-in
- None (ELSS: 3y)
- Liquidity
- High
- Risk
- High
LTCG 12.5% on gains over ₹1.25L/yr
NPS (Tier-1)
- Nominal corpus
- ₹76.83L
- After tax
- ₹76.83L
- Lock-in
- Till age 60
- Liquidity
- Low
- Risk
- Medium
60% of corpus tax-free; min 20% → taxable annuity · Extra ₹50k deduction under 80CCD(1B)
PPF
- Nominal corpus
- ₹51.63L
- After tax
- ₹51.63L
- Lock-in
- 15 years
- Liquidity
- Low
- Risk
- None
Fully tax-free (EEE)
Fixed Deposit
- Nominal corpus
- ₹49.89L
- After tax
- ₹39.68L
- Lock-in
- Flexible
- Liquidity
- High
- Risk
- None
Interest taxed yearly at your 30% slab
Estimates on your assumptions — real returns vary. NPS locks till 60 and forces an annuity; PPF locks 15 years; equity can fall short over short horizons. This is information, not investment advice.
“Where should I invest — PPF, NPS, mutual funds or an FD?” is one of the most-asked money questions in India, and the honest answer is “it depends on your numbers.” Every other site gives you a separate calculator for each, or a generic article — so you never see them side by side on the same money. This tool does exactly that.
Put the same monthly amount into all four and it projects each corpus, then does the part everyone else skips: it subtracts the tax you'd actually pay (nothing for PPF, yearly slab tax for FD, LTCG for equity funds, the annuity rule for NPS) and adjusts for inflation, so you compare the money you'd really keep in today's value — plus each option's lock-in, liquidity and risk. Then it names the winner for your inputs.
Prefer a head-to-head? Jump to a focused comparison: NPS vs PPF · PPF vs Mutual Fund · NPS vs Mutual Fund · FD vs Mutual Fund · PPF vs FD.
Ready to act on the result? See a detailed SIP calculator, PPF calculator, and FD calculator — or score your whole picture with the Money Decision Engine.
- PPF vs NPS vs mutual fund — which is better?
- There's no single winner — it depends on your horizon, tax slab and how much risk you can take. Over long periods an equity mutual fund usually grows the corpus the most but carries market risk; NPS is close but locks your money till age 60 and forces part of it into an annuity; PPF is fully tax-free and completely safe but grows slower and caps at ₹1.5 lakh a year; an FD is the safest and most flexible but its interest is taxed every year, so it typically ends up last after tax and inflation. Enter your own numbers above to see which wins for you.
- Where should I invest my money for the long term in India?
- For a long horizon (10+ years) most people are best served by a mix: equity mutual funds for growth, PPF or NPS for a tax-efficient safe anchor, and an FD only for money you may need soon. The right split depends on your risk appetite and tax slab — this calculator shows the after-tax, after-inflation outcome of each so you can decide with real numbers rather than rules of thumb.
- Is PPF better than mutual funds?
- PPF is safer and fully tax-free, but its ~7% return usually trails equity mutual funds (~11–12% long-run) by a wide margin over 15+ years — even after mutual-fund LTCG tax. PPF's edge is certainty and the ₹1.5 lakh EEE tax shelter; a mutual fund's edge is growth. Many investors use PPF as the safe part of the portfolio and equity funds for the growth part rather than choosing one.
- NPS vs PPF — which gives higher returns?
- NPS is market-linked and can return more than PPF over the long run because it holds equity, but it isn't guaranteed and it stays locked till age 60, with at least 20% of the corpus compulsorily used to buy a (taxable) annuity. PPF's return is government-set and fully tax-free with a 15-year lock-in. NPS also gives an extra ₹50,000 deduction under 80CCD(1B) (section 124 of the new Income-tax Act, 2025). Use the calculator to compare their after-tax outcomes on your contribution.
- FD vs mutual fund — which is better for me?
- An FD is right for money you can't risk or may need soon — it's safe and liquid but its interest is taxed at your income-tax slab every year, so a 30% taxpayer keeps far less than the headline rate suggests. A mutual fund suits money you can leave for 5+ years and is taxed only on gains at 12.5% (over ₹1.25 lakh a year), usually leaving you with much more. The calculator shows both after-tax figures side by side.
- Why compare after-tax and after-inflation returns instead of the nominal corpus?
- Because the headline corpus is misleading. Two options that show the same ₹1 crore can leave you very differently off once you subtract the tax you'll pay (nothing for PPF, yearly slab tax for FD, LTCG for mutual funds) and adjust for inflation eroding the rupee's value. This tool compares what you'd actually keep, in today's money — the number that decides where your rupee should really go.