What are the tax implications?

Modified on Sun, 3 Mar at 11:29 AM

You will have to pay a small amount of short-term capital gains tax (each year) on the amount that will be moved from the principal you invested in the money market funds. This fixed amount will be invested in the index funds.

With Fixed Deposits (FDs), the interest you earn gets taxed quarterly as it accrues and you have to pay taxes on it when you file your annual returns.

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