ELSS stands for Equity-Linked Saving Scheme. It is a type of mutual fund that provides tax benefits under Section 80C of the Income Tax Act. ELSS funds invest primarily in equity and equity-related instruments, which have the potential to generate higher returns than other tax-saving instruments such as fixed deposits and Public Provident Fund (PPF). ELSS funds have a lock-in period of three years, which means that you cannot withdraw your investment before three years. ELSS funds are suitable for investors who have a high-risk appetite and are looking for long-term wealth creation while also saving on taxes.

PPF stands for Public Provident Fund, while VPF stands for Voluntary Provident Fund. Both PPF and VPF are savings schemes offered by the government of India. The PPF is a long-term savings scheme that offers an interest rate of 7.1% per annum, compounded annually. The scheme has a tenure of 15 years, which can be extended by an additional 5 years. The minimum investment amount is Rs. 500, and the maximum investment amount is Rs. 1.5 lakhs per annum. The investment in PPF is eligible for tax benefits under Section 80C of the Income Tax Act. The interest earned on the investment is tax-free.

ULIP stands for Unit Linked Insurance Plan. It is a type of investment plan that provides both insurance and investment benefits. ULIP funds invest in a variety of asset classes such as equity, debt, and money market instruments. A portion of the premium paid towards the ULIP plan goes towards providing life insurance coverage, while the remaining amount is invested in the chosen fund(s). ULIPs offer the flexibility to switch between different funds based on your risk appetite and investment goals. ULIPs also provide tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

NPS stands for National Pension System. It is a voluntary, defined contribution retirement savings scheme that is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS funds invest in a variety of asset classes such as equity, corporate bonds, and government securities. The scheme offers two types of accounts: Tier 1 and Tier 2. Tier 1 account is a mandatory account that has a lock-in period until the age of 60. Tier 2 account is a voluntary account that allows investors to withdraw their funds without any lock-in period. NPS offers tax benefits under Section 80C and Section 80CCD(1B) of the Income Tax Act. The scheme also offers the flexibility to choose between different investment options and fund managers.

VPF, on the other hand, is a voluntary contribution made by an employee towards their Employee Provident Fund (EPF) account. The EPF is a retirement savings scheme that is mandatory for all salaried employees in India who earn less than Rs. 15,000 per month. The VPF allows employees to contribute more than the mandatory contribution towards their EPF account. The interest rate offered on VPF is the same as that of EPF, which is currently 8.5% per annum. The investment in VPF is also eligible for tax benefits under Section 80C of the Income Tax Act. The interest earned on the investment is tax-free.