On Kushal Lodha's podcast, CA Neeraj Arora explained why 'high net worth individuals' (HNWIs) prefer Arbitrage Funds over FDs for short-term goals. While returns are similar (6-8%), the tax difference is huge. FD interest is taxed at high slab rates (up to ~39%), but Arbitrage Funds are taxed as equity. This slashes the tax liability, making them highly efficient for wealth preservation.