Who doesn't wants to be rich and financially healthy in life? World's richest investor, Warren Buffett once said, "The best investment you can make is an investment in yourself. The more you learn, the more you'll earn.'' The best way to grow your money and become rich, is by investing in in various schemes. Some investments possess higher risk but can give more returns too. Let's compare the two highly popular investment options - Public Provident Fund and Mutual funds. The investors want high returns as quickly as possible with minimum or no risk involved. However, it remains a fact that investment products that give high returns with low or no risk do not exist and hence returns are always directly related to the risk involved in investments. 

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PPF is currently one of the most popular investment options in the country. As it is backed by the government, it is a safe option to put money into. PPF has a long term tenure of 15 years. The compounding interest and income tax exemption of Rs 1.5 lakh in PPF, makes it one of the best choices at present. Currently, PPF has a return of 8 per cent per annum. PPF is currently one of the best saving schemes for investors as it is tax saving too. PPF gives almost 8 per cent compounding returns annually, which is better than many Fixed deposit schemes or a person who wants to invest safely. It has a maturity of 15 years and any individual can invest through bank or post office.

But, Certified Financial Planner Poonam Rungta believes that the maximum limit of Rs 1.5 lakh is a disadvantage for Public Provident Fund. "SIP investments help you decide how much you wish to invest. Added advantage with mutual funds are that there is no restriction of investing maximum in funds, while in PPF you cannot invest more than Rs 1.5 lakh per year. However both options have a choice of smaller monthly or yearly investments meaning there is no need to set aside a lump sum, making it easier and less burden on your wallet too. But are different on the level of risk," she told Zee Business Online.

On the other hand, mutual funds are the funds invested in stock markets by the fund managers or experts. The SEBI registered fund managers like HDFC ICICI, SBI, Black Rock, DSP, Birla SL, Tata Equity etc provide mutual fund services. Any investor can start with a very little amount in the form of Systematic Investment plans (SIP), monthly fixed amounts. At present, mutual funds have given over 20 per cent average returns for 5 years, While 15 per cent average returns for 1 and 3 years, depending upon the category of the option and its time of holding. 

Hemant Rustagi, CEO, Wiseinvest Advisors told Zee Business Online, "An investor should never invest in the fund he/she does not understand or believe. Investments require pateince and a bit of risk. If an investor can afford a little amount of risk, mutual funds can be a right option otherwise, they can go for PPF. Also PPF does provide you savings on your tax, which MFs not.''

While PPF might be considered as the best investment schemes to save income tax as it qualifies for a tax exemption up to Rs 1.5 lakh under 80C of Income Tax Act,  Mutual funds make you pay short term or long term capital gains, in case of periodic gains in holdings. However, despite all these mutual funds are giving better returns as compared to PPF but innvolve risk. 

So, it is always suggested to take expert advice before putting your money in MFs, in order to choose the best fund for you.