FD Vs Arbitrage Fund: Which Is Better For High Taxpayers?

Arbitrage funds can be an effective alternative to fixed deposits for certain investors, especially those in higher tax brackets. In this video, Rachana Ranade, Founder, Rachna Ranade & Associates, explains how arbitrage funds work, why they typically generate stable returns, and how their taxation differs from FDs. She highlights that while returns may be similar to fixed deposits, the equity taxation structure can make arbitrage funds more tax-efficient for investors in the 30% tax slab. Watch this detailed discussion to understand whether arbitrage funds deserve a place in your short-term investment portfolio.