Investment Strategies for Rs 10 Lakh: Fixed Income and Arbitrage Funds for Short Term

Experts recommend different investment strategies for Rs 10 lakh based on time horizons. For one year, fixed income options like AAA-rated bonds, liquid funds, and arbitrage funds are advised to minimize risk and ensure tax efficiency. Arbitrage mutual funds, taxed like equity funds with favorable long-term capital gains rates, exploit price differences between cash and derivatives markets and may suit investors seeking stable returns amid market volatility. Longer-term investments may include equity and hybrid funds for growth.