If we talk about long-term investments, the top two that strike the mind are PPF and Mutual Funds.

So, you can not compare the two as PPF is a risk-free investment, interest rates are subject to change as per government policies whereas Mutual Fund’s returns are subject to market risk. Investing in any of the instruments depends on what kind of risk appetite you have.

But if you want to have an outstanding portfolio for wealth creation, diversification works well. You may decide how much percentage to invest in debt instrument and how much in market-linked based on many factors like a goal, age, risk-appetite to name a few.

If we talk about the lock-in period, PPF has a mandatory lock-in period of 15 years, and in Mutual Fund, except close-end funds do not have the lock-in period. Exit is flexible in Mutual Funds.

To understand more clearly how you can build your portfolio for the uncertain future you may read this blog, ” How to prepare your portfolio for the uncertain future?“