🔑
← All comparisons

PPF vs Gold — guaranteed government return or a physical hedge?

PPF is fully guaranteed, tax-free, and government-backed; gold has no guarantee but reacts differently to inflation and market stress. Compare both on the same contribution.

Run it on your own numbers

PPF Calculator vs Gold 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
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.

Gold

Physical or digital gold, valued by weight at the prevailing market price, plus making charges and GST on physical purchases.

PROS
Globally liquid — can be sold almost anywhere, quickly
Tends to hold or gain value during market stress, a useful hedge
No counterparty risk on physical gold
CONS
No income or yield — return comes purely from price appreciation
Making charges and GST reduce the effective return on physical gold
Storage and security are a real practical concern

Best for: A smaller diversifying allocation (typically 5–15% of a portfolio) as an inflation and crisis hedge, not a primary growth holding.

Questions
Can gold be part of a retirement portfolio alongside PPF?

Yes — many retirement plans include a modest gold allocation for diversification alongside guaranteed instruments like PPF, rather than choosing exclusively one or the other.

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.