If I rent instead of buying, where should the down-payment money go?

The case for renting only holds if you actually invest the money you did not put into a house, rather than letting it drift. A down payment plus years of the gap between EMI and rent is a large sum, and over long horizons a diversified, low-cost equity portfolio has historically done the heavy lifting for goals that are many years away. For money you might need sooner, steadier options like debt funds keep it less bumpy. The point is to match the money to when you will need it, and to keep it liquid, which is the whole advantage of renting as a founder. Automate it so it is not a decision you make every month. Past market returns are not a promise of future ones, and tax on gains varies by asset and holding period, so confirm the current rules with a qualified advisor.

A curated summary to orient you, not advice. The resources below are the real value.