Open-ended debt funds invest in overnight assets or securities with a one-day maturity. Overnight fund is the new debt fund category introduced as part of SEBI’s (Securities and Exchange Board of India) mutual fund reclassification exercise in 2018. It buys overnight reverse repos, CBLOs, and other next-day debt products. Since investments mature the next day, the fund has no credit risk. These funds are cheaper than other debt funds since they don't actively manage their debt.
Low Risk: Overnight funds buy one-day securities. This reduces interest rate risk because interest rate swings do not effect them over time.
Stable Returns:Due to their ultra-short duration, overnight funds attempt to provide reliable and predictable returns. Returns match market short-term interest rates.
Liquidity:Daily overnight securities maturities provide significant liquidity. Overnight funds are ideal for investors who need immediate access to their cash without exit loads or penalties.
Low Volatility:Interest rate movements have little influence on the funds' Net Asset Value (NAV) because they invest in short-term assets. Compared to funds containing longer-term securities, volatility is minimal.
For Short-Term Parking:Overnight funds are an alternative to savings accounts and fixed deposits for investors who want to park surplus funds.
Lets have a closer look.
Now let us jump and check about these top 15 mutual fund schemes.
Quant Overnight Fund
Fund Performance: The Quant Overnight Fund Fund has given 0.00% annualized returns in the past three years and 0.00% in the last 5 years and 0.00% in the last 10 years. The Quant Overnight Fund Fund comes under the Equity category of Quant Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Quant Overnight Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The Scheme seeks to generate returns by investing in debt and money market instruments with overnight maturity.
Scheme Manager: Sanjeev Sharma.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 242.48
1 Y Return (%)
: 7.17
Risko-Meter : Low
BANK OF INDIA Overnight Fund Regular Plan Growth
Fund Performance: The BANK OF INDIA Overnight Fund Regular Plan Growth Fund has given 5.68% annualized returns in the past three years and 0.00% in the last 5 years and 0.00% in the last 10 years. The BANK OF INDIA Overnight Fund Regular Plan Growth Fund comes under the Equity category of Bank of India Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in BANK OF INDIA Overnight Fund Regular Plan Growth via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to generate income commensurate with low risk and high liquidity by investing in overnight securities having residual maturity of 1 business day.
Scheme Manager: Mithraem Bharucha.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 109.7
1 Y Return (%)
: 6.87
Risko-Meter : Low
Axis Overnight Fund
Fund Performance: The Axis Overnight Fund Fund has given 5.60% annualized returns in the past three years and 4.79% in the last 5 years and 0.00% in the last 10 years. The Axis Overnight Fund Fund comes under the Equity category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Overnight Fund via lump sum is ₹ 500 and via SIP is ₹ 1000.
Scheme Objective: The Scheme seeks to provide reasonable returns commensurate with very low interest rate risk and providing a high level of liquidity, through investments made primarily in overnight securities having maturity/residual maturity of 1 business day.
Scheme Manager: Aditya Pagaria, Sachin Jain.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 9094.62
1 Y Return (%)
: 6.80
Risko-Meter : Low
Invesco India Overnight Fund
Fund Performance: The Invesco India Overnight Fund Fund has given 5.56% annualized returns in the past three years and 0.00% in the last 5 years and 0.00% in the last 10 years. The Invesco India Overnight Fund Fund comes under the Equity category of Invesco Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Invesco India Overnight Fund via lump sum is ₹ 1000 and via SIP is ₹ 500.
Scheme Objective: The Scheme seeks to generate income commensurate with low risk and high liquidity by investing in overnight securities having residual maturity of 1 business day.
Fund Performance: The UTI Fund has given 5.57% annualized returns in the past three years and 4.76% in the last 5 years and 5.87% in the last 10 years. The UTI Fund comes under the Equity category of UTI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in UTI via lump sum is ₹ 500 and via SIP is ₹ 500.
Scheme Objective: An open-end Gilt-fund with the objective to invest only in Central Government securities including call money, treasury bills and repos of varying maturities with a view to generate credit risk free return with a stated objective of maintaining the average maturity of the portfolio at less than 3 years.
