line
Use App
Home
Mutual FundsDebt FundsBest Overnight Funds

Overnight Mutual Funds

Average 3-Year Return

0.00 %

No. of Funds

0

Overnight Funds are a type of debts funds that invests in overnight securities with a maturity of one day. These Funds offer high liquidity and low-interest rate risk. While these are the best Overnight Mutual Funds to invest in, you must know these 3 things before you start investing. Read More...

Best Overnight Funds to Invest in 2024

Returns on Overnight Funds

Total Investment

₹ 0

Gain

₹ 0

Current Value

₹ 0

You have invested

Check the Returns of Your Investment in

About Overnight Funds

Overnight funds are a category of Debt Funds that invest in securities with a maturity of one day. They are designed for investors looking for the utmost safety and liquidity in their investments. These funds invest in overnight securities, meaning the investment is essentially for a single day, with the fund buying securities one day and selling them the next. Here's what you should consider:
  1. Very Low Risk: The primary feature of overnight funds is their extremely low risk, as they invest in securities with a very short maturity period.
  2. High Liquidity: These funds offer high liquidity, making them suitable if you need quick access to your money.
  3. Stability: Overnight funds provide stability with minimal fluctuations in returns, as the investment duration is only one day.
If your priority is capital preservation and you need high liquidity with minimal risk, overnight funds can be a suitable option. They are ideal for parking surplus funds for very short periods. However, it's important to understand that the returns on these funds are generally modest, reflecting their low-risk nature.
Investing in overnight funds comes with several benefits, particularly if you're seeking a very safe and liquid investment option:
  1. Minimal Risk: These funds carry the least amount of risk among all Mutual Funds categories due to their investment in securities with a one-day maturity.
  2. High Liquidity: They offer high liquidity, allowing you to access your funds almost immediately.
  3. Stable Returns: While the returns are modest, they are usually stable and predictable, with minimal fluctuations.
  4. No Lock-in Period: Overnight funds do not have any lock-in period, making them a flexible investment option.
  5. Suitable for Emergency Funds: If you're looking to create or maintain an emergency fund, these funds can be a good choice due to their liquidity and low risk.
Overnight funds are advantageous if you seek an investment with minimal risk and high liquidity, suitable for very short-term parking of funds. They are ideal for managing emergency funds or temporary surplus cash. As with any investment, it's important to consider how these funds fit into your overall financial plan and whether they align with your investment goals and risk tolerance.
Determining if overnight funds are a good investment choice for you hinges on your specific financial needs, risk tolerance, and investment duration. Overnight funds invest in securities that have a one-day maturity, making them one of the lowest-risk investment options available. They can be an appealing choice under certain circumstances:
  1. Risk Tolerance:: These funds are ideal if you have an extremely low risk tolerance, as they invest in very short-term instruments and hence have minimal market risk.
  2. Investment Horizon: If you're looking for a place to park your funds for a very short duration, perhaps even a day, overnight funds can be suitable.
  3. Liquidity Needs: These funds offer high liquidity, making them a good choice if you require quick access to your funds.
Overnight funds can be a good investment if you're seeking a very low-risk option for a short duration. They offer stability and high liquidity, which is useful for managing immediate cash flow needs. However, it's important to recognize that the returns on these funds are generally lower, aligning with their low-risk nature.
Overnight funds are particularly well-suited for certain types of investors:
  1. Risk-Averse Investors: If you prefer to avoid market risk and volatility, these funds are an appropriate choice.
  2. Short-Term Financial Requirements: Ideal for individuals or businesses looking to park surplus funds for very short periods, possibly even overnight.
  3. Emergency Fund Parking: These funds can be used for keeping your emergency funds, where the primary goal is quick accessibility and capital preservation.
  4. Corporate Treasuries: Suitable for corporate treasuries or institutional investors who manage large cash flows and need a safe, liquid place to park funds short-term.
  5. First-time Mutual Fund Investors: If you are new to mutual funds and want to start with a low-risk option, overnight funds can be a starting point.
Overnight funds prove to be an excellent choice for investors seeking a secure and easily accessible option for short-term investments. They serve as an optimal solution for temporarily storing excess funds that may be required on short notice, offering the added benefit of minimal risk. When making investment decisions, it is crucial to assess how these funds align with your overall financial strategy and objectives.
Overnight funds are a category of debt funds that invest in securities with a maturity of one day. They are designed for investors looking for the utmost safety and liquidity in their investments. These funds invest in overnight securities, meaning the investment is essentially for a single day, with the fund buying securities one day and selling them the next. Here's what you should consider:
  1. Very Low Risk: The primary feature of overnight funds is their extremely low risk, as they invest in securities with a very short maturity period.
  2. High Liquidity: These funds offer high liquidity, making them suitable if you need quick access to your money.
  3. Stability: Overnight funds provide stability with minimal fluctuations in returns, as the investment duration is only one day.
If your priority is capital preservation and you need high liquidity with minimal risk, overnight funds can be a suitable option. They are ideal for parking surplus funds for very short periods. However, it's important to understand that the returns on these funds are generally modest, reflecting their low-risk nature.
Investing in overnight funds comes with several benefits, particularly if you're seeking a very safe and liquid investment option:
  1. Minimal Risk: These funds carry the least amount of risk among all Mutual Funds categories due to their investment in securities with a one-day maturity.
  2. High Liquidity: They offer high liquidity, allowing you to access your funds almost immediately.
  3. Stable Returns: While the returns are modest, they are usually stable and predictable, with minimal fluctuations.
  4. No Lock-in Period: Overnight funds do not have any lock-in period, making them a flexible investment option.
  5. Suitable for Emergency Funds: If you're looking to create or maintain an emergency fund, these funds can be a good choice due to their liquidity and low risk.
Overnight funds are advantageous if you seek an investment with minimal risk and high liquidity, suitable for very short-term parking of funds. They are ideal for managing emergency funds or temporary surplus cash. As with any investment, it's important to consider how these funds fit into your overall financial plan and whether they align with your investment goals and risk tolerance.
Determining if overnight funds are a good investment choice for you hinges on your specific financial needs, risk tolerance, and investment duration. Overnight funds invest in securities that have a one-day maturity, making them one of the lowest-risk investment options available. They can be an appealing choice under certain circumstances:
  1. Risk Tolerance:: These funds are ideal if you have an extremely low risk tolerance, as they invest in very short-term instruments and hence have minimal market risk.
  2. Investment Horizon: If you're looking for a place to park your funds for a very short duration, perhaps even a day, overnight funds can be suitable.
  3. Liquidity Needs: These funds offer high liquidity, making them a good choice if you require quick access to your funds.
Overnight funds can be a good investment if you're seeking a very low-risk option for a short duration. They offer stability and high liquidity, which is useful for managing immediate cash flow needs. However, it's important to recognize that the returns on these funds are generally lower, aligning with their low-risk nature.
Overnight funds are particularly well-suited for certain types of investors:
  1. Risk-Averse Investors: If you prefer to avoid market risk and volatility, these funds are an appropriate choice.
  2. Short-Term Financial Requirements: Ideal for individuals or businesses looking to park surplus funds for very short periods, possibly even overnight.
  3. Emergency Fund Parking: These funds can be used for keeping your emergency funds, where the primary goal is quick accessibility and capital preservation.
  4. Corporate Treasuries: Suitable for corporate treasuries or institutional investors who manage large cash flows and need a safe, liquid place to park funds short-term.
  5. First-time Mutual Fund Investors: If you are new to mutual funds and want to start with a low-risk option, overnight funds can be a starting point.
Overnight funds prove to be an excellent choice for investors seeking a secure and easily accessible option for short-term investments. They serve as an optimal solution for temporarily storing excess funds that may be required on short notice, offering the added benefit of minimal risk. When making investment decisions, it is crucial to assess how these funds align with your overall financial strategy and objectives.

Other Debt Funds

Liquid
Banking & PSU
Corporate Bond
Dynamic Bond
Ultra Short Duration
Short Duration
Low Duration
Credit Risk
Gilt Funds
Gilt Funds 10 Year Constant Duration
Money Market
Floater
Medium Duration
Medium Long Duration
Long Duration

Explore Other Mutual Funds

Equity Fund

Equity Funds

High Risk, High Returns

hybrid Fund

Hybrid Funds

Some Equity, Some Debt

Elss Fund

ELSS Funds

Save Tax in Section 80C

Elss Fund

Index Funds

Buy an Entire Index!

Frequently Asked Questions

Overnight Funds invest in securities that mature in one day, essentially overnight. This means your investment is almost as liquid as cash, allowing the fund to reinvest in new securities daily. They offer a relatively safe avenue to earn returns overnight, making them an ideal choice for those looking for minimal risk and high liquidity.

Overnight Funds are typically invested in overnight securities, including treasury bills and other government securities that mature the next day. These investments are very low risk, as they are short-term and often backed by the government, ensuring the principal amount is safe while generating returns.

Overnight Funds can give a profit, albeit modest, through the interest earned on the overnight securities they invest in. While the returns are lower compared to longer-term investment options, they offer a very safe way to park your funds, especially for short periods, with minimal risk.

No, Overnight Funds are not tax-free. The interest income you earn from these funds is added to your overall income and taxed according to your income tax slab. This means the tax implication depends on your total income, making it important to consider this aspect when evaluating your returns.

Profits under Overnight Funds are treated as income from other sources and are taxed according to your applicable income tax slab rates. If you fall into a higher tax bracket, your earnings from these funds will be taxed at a higher rate. If the investment is held for more than three years, an LTCG of 20% is applicable.
To choose the best Overnight Fund, consider factors such as the fund's historical performance, the reputation of the fund house, and the expense ratio. Given that returns on these funds are typically very close across the board, a lower expense ratio can lead to slightly better net returns. Additionally, consider the ease of transactions and customer service of the platform or fund house.
No, you don't need a demat account to invest in Overnight Funds. You can invest through mutual fund investment platforms, AMC websites, or financial advisors directly. These funds offer simplicity and convenience, making them accessible even without a demat account, which is more commonly used for holding shares and securities.
Considering the nature of Overnight Funds, the concept of SIP (Systematic Investment Plan) doesn't apply as it does in equity or long-duration debt funds. Investments in Overnight Funds are essentially lump sum by default, as each day's investment is treated independently, catering to those looking for a safe place to park funds for very short periods, often as an alternative to keeping money in a bank account.
To start an Overnight Fund SIP online, follow these 4 steps:
  1. Open Demat Account
  2. Choose the Overnight Fund you wish to invest in.
  3. Choose the SIP option, specifying the amount and SIP date
  4. Set up an auto-pay via bank account to automate the SIP payments
Yes, you can redeem your investment in Overnight Funds at any time. These funds are designed for very short-term investments, providing high liquidity. Redemption requests are usually processed quickly, with the settlement often occurring the next working day, making these funds an excellent option for managing short-term liquidity needs.
No, there is no lock-in period for Overnight Funds, reflecting their purpose as a highly liquid, short-term investment vehicle. You can invest in these funds today and redeem your investment the very next day, making them a flexible option for parking surplus cash.
Overnight Funds carry the lowest risk among mutual fund categories due to their investment in securities with a one-day maturity. However, they are not entirely risk-free. They are subject to interest rate risk, although minimal, and operational risk related to the settlement of securities. The returns are also subject to changes in the repo rate or other short-term rates, but the overall risk is very low.

While Overnight Funds are considered among the safest investment options available, no investment can be deemed 100% safe. The risk in Overnight Funds is minimal, primarily due to their investment in very short-term, high-quality debt instruments. However, like any market-linked investment, they carry a small degree of inherent risk, albeit significantly lower compared to other fund types.





Invest in Direct Mutual Funds at

0% Commission!

Start with SIP or Lumpsum. Choose from 1000+ direct mutual funds.


border
logo

Join us on

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN - U74999WB2012PTC184187 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: Office No. 14D, 4th Floor, Shri Krishna Chambers, 78, Bentick Street, Kolkata - 700001, West Bengal, India.
Corporate Office: A-302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors