Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / App stocks or PPF? Choose what works for you 
    Summarize
    Next Article
    App stocks or PPF? Choose what works for you 
    Refer to this guide

    App stocks or PPF? Choose what works for you 

    By Sanjana Negi
    Feb 17, 2025
    07:01 pm

    What's the story

    The smartphone economy presents a tantalizing investment opportunity. While app-based companies are flourishing, traditional options like India's Public Provident Fund (PPF) remain appealing.

    This article provides a detailed comparison of investing in app stocks versus the PPF, outlining potential returns, risks, and tax implications.

    It ultimately empowers investors to make informed decisions.

    Basics

    Understanding app stocks

    App stocks are shares of companies whose main business is conducted through mobile applications. Think Amazon to Netflix.

    When you invest in app stocks, you're essentially betting on the continued rise of digital consumerism.

    Yes, the returns are potentially huge (if you pick right and time it well) but they are also much more volatile than your dad's PPF.

    You're
    20%
    through

    Safety net

    The stability of PPF investments

    The Public Provident Fund (PPF) is a government-backed long-term investment scheme by the Government of India. It offers tax-free returns at a fixed interest rate (currently around 7% to 8%).

    Notably, it is one of the safest investment options as it guarantees returns without the risk of market fluctuations.

    If you want stability and not the thrill of a high-risk, high-reward situation, PPF is the way to go.

    You're
    40%
    through

    Tax matters

    Tax implications: APP stocks vs PPF

    In the context of taxes, PPF investments hold a unique advantage due to their EEE (Exempt-Exempt-Exempt) status. This implies that the principal amount invested, the interest accrued, and the maturity proceeds are all exempt from tax under Section 80C of the Income Tax Act.

    Conversely, capital gains tax applies to profits from app stocks; short-term gains incur a 15% tax, while long-term gains exceeding ₹1 lakh are taxed at 10%.

    You're
    60%
    through

    Calculating risks

    Risk assessment: Highs and lows

    Putting your money in app stocks comes with substantial market risk, including volatility stemming from international events or company-specific developments. In short, the potential for high returns comes with an equally high risk factor.

    On the other hand, the Public Provident Fund (PPF) in India provides a secure, risk-free return, making it a perfect option for conservative investors or those looking to build a retirement corpus.

    You're
    80%
    through

    Balancing act

    Diversification strategy: Best of both worlds?

    A smart investor could diversify their portfolio by investing in both risky app stocks and the safe Public Provident Fund (PPF).

    This strategy balances the potential losses in the stock market with the secure, government-guaranteed returns of PPF.

    This not only mitigates risks but also creates multiple avenues for building wealth over time.

    Done!
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    Finance

    Latest

    Crystal Palace win the FA Cup 2024/25 title: Key stats FA Cup
    KKR knocked out of IPL 2025 after washout versus RCB Kolkata Knight Riders (KKR)
    Jasmine Paolini makes history by winning 2025 Italian Open: Stats Coco Gauff
    White pigeons pay tribute to Virat Kohli during RCB-KKR clash Virat Kohli

    Finance

    If you have foreign assets or income, read this  Business
    Balanced funds v/s PPF: The difference is clear  Business
    A guide to maritime industry financing in India  Business
    Sports endorsements are taxed the way income is: Details here  Business
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025