Download the ABCD app

Unlock Financial Tools, Investment Insights, And Expert Guidance – All In One Convenient App !

Visit Our ABCD Page
bannerbanner
Step 1
Step 2
Step 3
Finish
Quick Start With Overnight Mutual Funds

Provide your details and our team will get in touch with you

img
img

What is a Overnight Mutual Fund?

An overnight mutual fund is a type of debt mutual fund which invests a majority of its portfolio in securities maturing within a day. The fund, thus, has a short-term investment horizon.

img

Advantages of Overnight Mutual Funds

High liquidity

Redemptions can be done instantly and as the underlying securities have a short maturity period, overnight funds are highly liquid

Limited risks

Overnight funds have negligible credit risk and interest rate risk, making them one of the safest debt funds.

Explore Overnight Mutual Funds

Our Life Insurance Plans

Aditya Birla Sun Life Medium Term Direct Plan Growth

  • Direct-Growth
  • Debt

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: Very High
  • MIN. INVESTMENT 500
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹10000
  • Get (30 Yrs) ₹24,850*

*Projections/estimations is backtested using historical data.

Our Life Insurance Plans

Aditya Birla Sun Life Long Term Direct Plan Growth

  • Direct-Growth
  • Life

Value Research Rating:

  • AUMAUM: 23427(Cr)
  • RISKRisk: High
  • MIN. INVESTMENT 1000
  • 5 YRS RETURNS 33.32%
  • Invest (Per Month) ₹15000
  • Get (30 Yrs) ₹34,850*

*Projections/estimations is backtested using historical data.

HIDE COMPARISON

SELECT MORE TO COMPARE

SELECT MORE TO COMPARE

SELECT MORE TO COMPARE

SELECT MORE TO COMPARE

Overnight Funds Returns Calculator

REGULAR INVESTMENT

SIP

Invest systematically in regular amounts and build a corpus with a disciplined investing habit.

START SIP
ONE TIME INVESTMENT

Lump sum

Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.

INVEST LUMPSUM
INVEST AMOUNT
PERIOD
RETURNS
%

Total Amount Invested

0

after 30 years you will get a return of

0

Disclaimer: Projections/estimations is backtested using historical data.

TARGETED RETURN VALUE
INVESTMENT PERIOD
RETURNS

Total Amount Invested

0

after 30 years you will get a return of

0

Disclaimer: Projections/estimations is backtested using historical data.

ABCD - One app to build a diversified
investment portfolio

Invest in mutual funds online with the ABCD app and build your portfolio one click at a time.

  • Life Insurance
    A choice of different types of mutual fund schemes
  • Life Insurance
    Online investments with a fully integrated digital platform
  • Life Insurance
    Facility to switch, redeem and invest more from a single platform

Scan the QR code to download our Mobile App

image_1

Understanding Overnight Mutual Funds

  • What are Overnight Mutual Funds?
  • What are the features of Overnight Mutual Funds?
  • Things to keep in mind when investing in Overnight Mutual Funds
  • What are the types of risks that Overnight Mutual Funds face?
  • What is the tax implication of Overnight Mutual Funds?
  • What are the payout options?

What are Overnight Mutual Funds?

  • Overnight Mutual Funds are a type of debt fund investing in securities with a one-day maturity. They are open-ended debt funds actively managed and suitable for investors looking to park their surplus funds for a short period.

What are the features of Overnight Mutual Funds?

  • Negligible credit risk since the instruments mature within a day

  • No interest rate risk as a change in interest rates wouldn't affect securities maturing in a day

  • Can offer better returns than savings accounts

  • You can deposit and withdraw your investment at your convenience

  • Invest through SIP or lump sum

Things to keep in mind when investing in Overnight Mutual Funds?

Check the expense ratio and choose a fund which has the lowest expense ratio for better returns

Since the returns are low, compare and select the fund delivering better returns than its competitors

Overnight funds are suitable if you want ready access to funds. If you can stay invested for several weeks or months, choose another fund for better returns.

What are the types of risks that Overnight Mutual Funds face?

  • Credit Risk

    Risk of default on the debt instrument

  • Interest Rate Risk

    Risk of rising interest rates, which reduces the value of debt instruments

  • Reinvestment Risk

    Risk of not getting good returns on reinvestment.

  • Inflation risk

    Risk of inflation reducing the returns from the debt fund

  • Liquidity risk

    Risk of not being able to trade in debt instruments

What is the tax implication of Overnight Mutual Funds?

  • Returns earned are taxed at your income tax slab rates

  • Dividends earned, if any, are taxed at your income tax slab rate.

What are the payout options?

  • Dividend option

    Earn dividends on your investment at regular intervals

  • Growth option

    Accumulate the returns over the investment tenure and get a lump sum amount on redemption

Portfolio Track

Consolidate with Portfolio Track
  • Life Insurance
    Consolidate assets, liabilities
  • Life Insurance
    Track portfolio at fingertips

Credit Track

Easily check credit score with Credit Track
  • Life Insurance
    Decide wisely with credit stimulator
  • Life Insurance
    Get personalised loan offers
image

FAQs On Overnight Mutual Funds

Overnight funds are mutual funds that invest primarily in short-term debt securities with one-day maturity. They are among the safest debt funds available and might provide higher returns than savings bank accounts.

However, please go through all the factors involved in both options and then make a decision best suited to your personal needs.

The minimum investment amount for overnight funds varies as per the fund house.

Firstly, scrutinise the fund for its returns and performance consistency. Secondly, check the expense ratios of your shortlisted funds. Most importantly, make sure that you are investing in an overnight fund not because of a recent credit mishap or financial issue but towards a sound financial goal.

Since overnight funds do not carry an exit load, redemption is easy. You can directly use the same mobile app you used before to make your investment and place a redemption order within minutes.

No, overnight funds do not need to be monitored and managed for too long, making their expense ratio lower than other funds.

Other asset class funds

image

Debt Funds

Invest in debt securities for low risks and stable returns.

Know More
image

ETF Funds

Invest in funds listed and traded on the stock exchange

Know More
image

Hybrid Funds

Get a mix of equity, debt and other asset classes for a diversified portfolio

Know More
image

Fund of Funds

Mutual funds that invest in other mutual funds both in India and globally

Know More
image

Index Fund

Passively-managed mutual funds tracking a particular index

Know More