Supposing I start using the Balance app, make some monthly savings. During the webinar it was told that Balance app uses the money to buy nav of ICICI prudential money market fund. As this fund is a liquid fund, So if I make a withdrawl before 3 years, it will attract STCG tax? AmI right?
Well - the rule is that it will attract marginal income tax within 3 years and after that it is 20% or 10%+indexation - whichever is lower. One other thing you need to consider is that the the difference between expense ratios of regular and direct funds in money market space is huge.
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