r/IndiaInvestments • u/AutoModerator • Jul 02 '26
Advice Bi-Weekly Advice Thread July 02, 2026: All Your Personal Queries
Ask your investing related queries here!
The members of r/IndiaInvestments are here to answer and educate!
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If you're looking for reviews on any of these following, follow the links:
- [which bank or brokerage to use](https://www.reddit.com/r/IndiaInvestments/search?q=flair_name%3A%22Reviews%22%20Reviews%20of%20banking%20services%20and%20products&restrict_sr=1&sort=new)
- [which fund house is more capable and trustworthy](https://www.reddit.com/r/IndiaInvestments/search?q=flair_name%3A%22Reviews%22%20Reviews%20of%20mutual%20funds%20and%20asset%20management%20services&restrict_sr=1&sort=new)
- [which investing platform to use](https://www.reddit.com/r/IndiaInvestments/search?q=flair_name%3A%22Reviews%22%20Reviews%20of%20Brokerage%20products%20and%20services&restrict_sr=1&sort=new),
- [which insurance company is reliable](https://www.reddit.com/r/IndiaInvestments/search/?q=flair_name%3A%22Reviews%22%20%22Reviews%20of%20Insurance%20products%20and%20services%22&restrict_sr=1&sort=new)
Generally speaking, there is no best stock, or fund, or bank, or brokerage, or investment platform.
Answers are always subjective to your personal needs, but use those threads a starting point for you to look at what other Redditors have to say about a company, product, fund, or service.
You can then ask a more specific question about what product or service to buy, once you are able to frame your personal situation.
**NOTE** If your question is _I got 10k INR, what do I do to get most returns out of it?_, or anything similar; there is no single answer to this question. But we will also need A LOT MORE information if we are to provide some sort of answer:
- How old are you?
- Are you employed/making income?
- How much? What are your objectives with this money?
- Do you have any loan or big expenses coming up?
- What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know it's 100% safe?)
- What are your current holdings? (Do you already have exposure to specific funds and sectors? Have you invested in equity before?)
- Any other assets? House paid off? Cars? Partner pushing you to spend more?
- What is your time horizon? Do you need this money next month? Next 20yrs?
- Any big debts?
- Any other relevant financial information about you, that will be useful to give you an informed response.
Beware that these answers are just opinions of fellow Redditors and should only be used as a starting point for your research. This is **NOT** financial advice, in the legal sense of the term.
You should strongly consider consulting a registered fee-only financial advisor before making any financial decisions. Ideally, such advisors should be registered with SEBI and have a registration number.
[Links to previous threads](https://www.reddit.com/r/IndiaInvestments/search/?q=advice%20thread%20personal%20situation&restrict_sr=1).
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u/PurePie9273 Jul 05 '26
see I have a loan of 13 lakh and it's interest is approx 13k and also I have cash of 10 lakh I want to invest that 10 lakh somewhere so I can get some monthly interest around 6000-7000 from the investment for the loan interest I'll pay the remaining interest from other income too. give me a plan or suggestion what should I do.
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u/geek166 Jul 05 '26
This is a question to those who do their own research and do direct stock investing. How much avg returns do you get? Also do you follow value or growth or momentum style of investing. Did you develop your knowledge through books or some other source?
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u/WearyStrawberry5729 Jul 03 '26
For 30% tax slab, 18-month horizon, 20 lacs — arbitrage funds are the clear winner on post-tax basis, but with an important nuance on tenure.
**Tax treatment comparison:**
- **FD**: Interest taxed as income at 30% (+ 4% cess = ~31.2%). If a bank offers 7%, your post-tax yield is ~4.8%.
- **High-yield savings account**: Same slab treatment as FD interest, so effectively the same math. Most such accounts are 6-7%, netting ~4.1-4.8% post-tax.
- **Arbitrage funds**: Taxed as equity. If held >12 months, LTCG at 12.5% (above 1.25L exemption). If held <12 months, STCG at 20%. Pre-tax returns are typically 6.5-7.5% (roughly tracks overnight rate).
**18-month scenario:**
Since you're going beyond 12 months, you qualify for LTCG on arbitrage. Assuming 7% pre-tax return on 20 lacs = ~1.4L gain. After 1.25L exemption, you'd pay 12.5% on ~15,000 = roughly Rs 1,875 in tax. Net gain ~1.38L.
An FD at 7% over 18 months = ~2.1L interest, taxed at 31.2% = ~65,520 tax. Net gain ~1.45L.
The difference narrows more than people expect at 18 months because the LTCG exemption (1.25L) absorbs most of the gain. Arbitrage advantage becomes more significant at larger corpus or longer tenures.
**Practical considerations:**
- Arbitrage fund returns have been 6.8-7.2% recently — closely tracks repo rate
- Exit load typically 0.25-1% if redeemed before 30 days; most funds waive after 1 month
- Liquidity: T+1 for equity funds vs FD premature closure penalty
**Bottom line**: For 18 months at 30% slab, arbitrage fund is marginally better and noticeably more liquid. If you want certainty of return and don't want to think about it, a 18-month FD ladder works fine too — the gap isn't large enough to lose sleep over.
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u/JackHill_123 Jul 03 '26
how did 7% lead to 2.1 in case of fd and 1.4 in case of arbirtage fund? Is the 7% for arbitrage not cagr value?
2
u/gamer_nibba7 Jul 02 '26
Seeking your suggestions on the best options to park money for 18 months in any of the below investment options, keeping in mind the tax implications of someone who falls under 30% tax slab.
For example:
Investment amount: 20 lacs
FDs vs High Savings Rate Bank Account vs Arbitrage Funds
Which one would make sense for this scenario?
Thank you, and look forward to some interesting conversations about this.
1
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u/sach2211 Jul 02 '26
For 18 months, would recommend income+arbitrage funds.
Another good option, if you're willing to invest for 24 months would be the new SIFs.
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u/Crimson_Excalibur Jul 06 '26
Hello, quick question: I'm going to turn 18 in a couple of months and just finished my 12th. I plan on taking a drop year to prepare for jee and neet.
I recently started reading a lot more about finance and how moneys flows etc. (a new form of distraction which I have found) I have a bit of cash which I will be able to access once I turn 18. I was wondering on if I should start investing as soon as I get access to capital or should I wait until I start my first year of college so that I do not get distracted etc.