🔑
← All comparisons

Lumpsum vs PPF — market growth or a guaranteed government rate?

A lumpsum into equity funds carries real market risk for higher growth potential; PPF is fully guaranteed and tax-free but capped and locked in. Compare both on the same amount.

Run it on your own numbers

Lumpsum Calculator vs PPF Calculator15-year comparison

Opens Compare Lab pre-loaded with both, in your own currency — adjust any input and the chart updates instantly.

Compare now →
How each one actually works
Lumpsum Investment

A one-time amount invested into equity mutual funds all at once, rather than spread out over time.

PROS
More of your money is exposed to growth for longer, in a rising market
Simpler to execute — one transaction
No ongoing commitment required
CONS
Full exposure to a bad entry point if the market drops right after investing
No averaging effect to smooth out volatility
Requires having the full amount available upfront

Best for: A windfall (bonus, inheritance, asset sale) when you don't have another pressing use for it and can leave it invested long-term.

PPF (Public Provident Fund)

A government-backed, long-term savings scheme with a 15-year lock-in, a capped annual contribution, and fully tax-free interest and maturity.

PROS
Fully tax-free — contribution, interest, and maturity (EEE status)
Government-guaranteed, effectively zero credit risk
Rate is typically higher than most bank FDs
CONS
15-year lock-in with only limited partial withdrawal after year 7
Annual contribution capped (currently ₹1.5 lakh)
Rate is revised quarterly by the government and can fall

Best for: The guaranteed, tax-free core of a long-term goal like retirement, where you can commit to the lock-in.

Questions
Can I invest a full lumpsum into PPF in one year?

No — PPF caps annual contributions at a fixed limit (currently ₹1.5 lakh), so a larger lumpsum can't go in all at once; you'd need to split it across years or invest the remainder elsewhere.

Where do these numbers actually come from?

The same calculation engine that powers our standalone calculators and Compare Lab — nothing here is a separate or simplified estimate. Every assumption (rate, tenure, tax) is visible and adjustable once you open the comparison with your own numbers.

Theme color
All figures are illustrative projections based on the assumptions you select, not guaranteed returns. Validate tax and scheme rules before making financial decisions.