Who Should Invest in Overnight Mutual Funds?
Overnight funds are the best investment instrument for high net worth investors and big financial institutions. These funds provide them with higher returns than conventional bank current deposits. Here is a lay down on the types of investors who prefer to invest in overnight mutual funds: View More
Features of Overnight Mutual Funds
1-Day Maturity – Overnight funds are debt instruments with a maturity of one day. So, investors often move their capital from a current account to overnight funds to earn interest. View More
Factors to consider while investing in Overnight Funds
Here is a list of factors you can consider before investing in overnight funds. View More
Taxability of Overnight Funds
The best overnight funds are more tax-efficient than many other investment options. Overnight fund returns may attract two types of taxes – Short-Term Capital Gains (STCG) tax and Long-Term Capital Gains (LTCG) tax. Since these funds are classified as ‘Debt Funds,’ the STCG applies on withdrawals made before three years while the LTCG applies on withdrawals made after three years. View More
Risks Involved With Overnight Funds
Overnight funds are mostly known for their benefits, as the holding period is generally no more than a day. But, despite such fascinating benefits, there are also some downsides of investing in overnight funds: View More
Advantages of Overnight Mutual Funds
The following are the top benefits of investing in overnight funds: View More
Popular Overnight Mutual Funds
- Fund Name
- Min SIP Investment Amt
- AUM (Cr.)
- 3Y Return
SBI Overnight Fund – Direct Growth is an Overnight scheme that was launched on 03-01-13 and is currently under the management of our experienced fund manager R Arun. With an impressive AUM of ₹16,872 Crores, this scheme's latest NAV is ₹3811.7277 as of 01-12-23.
SBI Overnight Fund – Direct Growth scheme has delivered a return performance of 6.6% in the last 1 year, 4.7% in the last 3 years, and an 6.2% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹16,872
- 3Y Return
- 6.6%
HDFC Overnight Fund – Direct Growth is an Overnight scheme that was launched on 31-12-12 and is currently under the management of our experienced fund manager Anil Bamboli. With an impressive AUM of ₹10,066 Crores, this scheme's latest NAV is ₹3476.5257 as of 01-12-23.
HDFC Overnight Fund – Direct Growth scheme has delivered a return performance of 6.5% in the last 1 year, 4.7% in the last 3 years, and an 6% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹10,066
- 3Y Return
- 6.5%
AXIS Overnight Fund – Direct Growth is an Overnight scheme that was launched on 15-03-19 and is currently under the management of our experienced fund manager Aditya Pagaria. With an impressive AUM of ₹11,340 Crores, this scheme's latest NAV is ₹1238.9234 as of 01-12-23.
AXIS Overnight Fund – Direct Growth scheme has delivered a return performance of 6.6% in the last 1 year, 4.7% in the last 3 years, and an 4.6% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹11,340
- 3Y Return
- 6.6%
PGIM India Overnight Fund – Direct Growth is an Overnight scheme that was launched on 27-08-19 and is currently under the management of our experienced fund manager Puneet Pal. With an impressive AUM of ₹65 Crores, this scheme's latest NAV is ₹1208.8099 as of 01-12-23.
PGIM India Overnight Fund – Direct Growth scheme has delivered a return performance of 6.6% in the last 1 year, 4.7% in the last 3 years, and an 4.5% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹65
- 3Y Return
- 6.6%
Sundaram Overnight Fund – Direct Growth is an Overnight scheme that was launched on 20-03-19 and is currently under the management of our experienced fund manager Sandeep Agarwal. With an impressive AUM of ₹1,173 Crores, this scheme's latest NAV is ₹1244.5973 as of 01-12-23.
Sundaram Overnight Fund – Direct Growth scheme has delivered a return performance of 6.6% in the last 1 year, 4.7% in the last 3 years, and an 4.8% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹1,173
- 3Y Return
- 6.6%
Franklin India Overnight Fund – Direct Growth is an Overnight scheme that was launched on 08-05-19 and is currently under the management of our experienced fund manager Pallab Roy. With an impressive AUM of ₹274 Crores, this scheme's latest NAV is ₹1222.1381 as of 01-12-23.
Franklin India Overnight Fund – Direct Growth scheme has delivered a return performance of 6.5% in the last 1 year, 4.6% in the last 3 years, and an 4.5% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹274
- 3Y Return
- 6.5%
UTI-Overnight Fund – Direct Growth is an Overnight scheme that was launched on 14-01-13 and is currently under the management of our experienced fund manager Amit Sharma. With an impressive AUM of ₹6,251 Crores, this scheme's latest NAV is ₹3206.108 as of 01-12-23.
UTI-Overnight Fund – Direct Growth scheme has delivered a return performance of 6.6% in the last 1 year, 4.7% in the last 3 years, and an 6.2% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹6,251
- 3Y Return
- 6.6%
Aditya Birla SL Overnight Fund – Dir Growth is an Overnight scheme that was launched on 01-11-18 and is currently under the management of our experienced fund manager Kaustubh Gupta. With an impressive AUM of ₹8,210 Crores, this scheme's latest NAV is ₹1266.8718 as of 01-12-23.
Aditya Birla SL Overnight Fund – Dir Growth scheme has delivered a return performance of 6.6% in the last 1 year, 4.7% in the last 3 years, and an 4.8% since its launch. With a minimum SIP investment of just ₹500, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹500
- AUM (Cr.)
- ₹8,210
- 3Y Return
- 6.6%
Canara Robeco Overnight Fund – Direct Growth is an Overnight scheme that was launched on 24-07-19 and is currently under the management of our experienced fund manager Suman Prasad. With an impressive AUM of ₹180 Crores, this scheme's latest NAV is ₹1211.6229 as of 01-12-23.
Canara Robeco Overnight Fund – Direct Growth scheme has delivered a return performance of 6.5% in the last 1 year, 4.7% in the last 3 years, and an 4.5% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹180
- 3Y Return
- 6.5%
Edelweiss Overnight Fund – Direct Growth is an Overnight scheme that was launched on 24-07-19 and is currently under the management of our experienced fund manager Rahul Dedhia. With an impressive AUM of ₹396 Crores, this scheme's latest NAV is ₹1213.2399 as of 01-12-23.
Edelweiss Overnight Fund – Direct Growth scheme has delivered a return performance of 6.5% in the last 1 year, 4.6% in the last 3 years, and an 4.5% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Overnight funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹396
- 3Y Return
- 6.5%
Frequently Asked Questions
Are the returns on Overnight Funds taxable?
Yes, the returns on overnight funds are taxable. However, they are more tax efficient as compared to other investment options. The tax rates depend on the period for which you hold the funds. If you hold the funds for less than three years, you must pay a Short-Term Capital Gains Tax on the returns. The Short-Term Capital Gains Tax rate will be decided based on the income slab of the investor.
However, if you hold the fund for more than three years, you will have to pay a Long-Term Capital Gains Tax at a flat rate of 20%.
What are some benefits of investing in Overnight Mutual Benefits?
There are several benefits of investing in overnight funds. The overnight funds are held for a shorter period. Hence, they are secure, and you do not lose a lot of capital in case of interest fluctuations. Also, if you have a lot of idle funds and want to earn some returns on them, you can invest them in an overnight fund.
Who Are These Funds Suited For?
Overnight funds are debt funds that get their returns from debt securities. These funds have an overnight maturity. These open-ended funds have a residual maturity of day. The fund is quite flexible and is a liquid form of different debts. If you are interested in investing in overnight funds, you need to place a request for the purchase and the redemption of the funds during regular business hours.
These funds are ideal for risk-averse investors looking for short-term investments and short-term gains. If you want a weekly investment option, you can invest in short-term funds like overnight funds. You can even hold these securities for a day. These funds are ideal for investors who want flexibility with their investments.
Are Overnight Funds dependent on interest rate changes?
Any interest changes will impact the overnight funds directly. For instance, if you make the investment at 1 AM today and the RBI reduces the interest rate at 4 PM on the same day, the returns on the overnight fund will decrease substantially. However, your returns will increase considerably if the RBI increases the interest rate within the same day.
What are the top overnight mutual funds in 2022?
Several overnight mutual funds are performing well. Some of the best-performing overnight mutual funds of the year are UTI Overnight Fund, SBI Overnight Fund, and HDFC Overnight Fund.