What’s better for an Indian investor: investing in international mutual funds (like those with U.S. exposure but higher expense ratios) or buying U.S. ETFs directly via platforms like INDmoney?
I’m aware of the 20% TCS on remittances above ₹7L, the ~$60K U.S. estate tax threshold, and the added tax reporting complexity.
Is going through all that worth it just for lower expense ratios, or are there other meaningful advantages to direct ETF investing that I’m missing?
I’m 37 now. I started my career in 2010 with a ₹3 LPA CTC — which felt reasonable at the time. Like many others, I picked up an LIC policy mainly to save tax, without really understanding much about finances. Even then, it wasn’t enough to completely avoid taxes.
Over time, as my salary grew, it feels like my “silent business partner” — the government — kept increasing its share. Now I’m in the 30% tax bracket, and ironically, a bit of financial awareness has made things worse mentally.
Earlier, when I didn’t think much about money, I didn’t care about taxes either. But now, seeing a huge portion of my income go away every month — and an even bigger hit during bonus season around April (almost feels like an April Fool’s joke) — it’s hard to ignore.
I don’t mind paying taxes if there’s a clear return on it. But here’s where the frustration builds:
If I invest post-tax money in FDs → returns are already low, and then taxed again at 30%.
If I spend money → GST is applied again.
If I drive → I pay tolls.
If I ride a bike → I deal with poor roads, potholes, and unsafe driving conditions.
If I invest in mutual funds → markets have been largely stagnant, and INR keeps depreciating.
If I buy land → pricing is inconsistent, circle rates are unrealistic, and black money still dominates.
If I sell land later → no indexation benefit, pushing people toward cash deals.
If I try alternatives like crypto → flat 30% tax, no relief.
At some point, it feels like every path leads to taxation without proportional benefit.
What makes it harder to accept is seeing how tax money is used. Apart from a few good schemes, a lot seems to go into freebies. Political parties openly promise cash transfers and subsidies — even when governments are already in debt.
I’m not against welfare, but it raises a basic question:
Are taxpayers getting fair value for what they contribute?
Right now, it often feels less like contributing to a system — and more like being squeezed by it.