JioBlackRock Overnight Fund NFO: Key Details, Strategy & Suitability

The NFO is an open-ended overnight debt scheme that aims to generate regular income by investing in a portfolio of high-quality debt and money market instruments with overnight maturity. This scheme is ideal for investors seeking low-risk, short-term investment options with high liquidity. Being an overnight fund, the NFO offers relatively low-interest rate and credit risk while providing flexibility for daily redemptions. The fund’s investments are aligned with the Nifty 1D Rate Index benchmark, providing stability and transparency. With its low entry point of ₹500 and no exit load, it suits both individual investors and institutions seeking efficient cash management.

Key Features of this JioBlackRock Overnight Fund

• Opening Date: 30th June 2025
• Closing Date: 2nd July 2025
• Exit Load: Nil
• Minimum Investment Amount: ₹500 and any amount thereafter

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Objective of the JioBlackRock Overnight Fund

The primary objective of the JioBlackRock Overnight Fund - Direct (G) is to generate regular income by investing in debt and money market instruments with overnight maturity. It focuses on providing investors with stable, low-risk returns while maintaining high liquidity.

Investment Strategy of the JioBlackRock Overnight Fund

• The JioBlackRock Overnight Fund - Direct (G) invests entirely in high-quality debt and money market instruments with overnight maturity.
• The portfolio will be structured to mitigate credit, interest rate, liquidity, and concentration risks.
• Securities with daily or overnight put/call options will be preferred to ensure liquidity and alignment with maturity targets.
• The fund manager will closely monitor system liquidity, RBI policies, and interest rate movements to optimise portfolio performance.
• Active risk control and diversification will be applied to minimise potential price fluctuations.

Risks Associated with the JioBlackRock Overnight Fund

• Exposure to market risk and interest rate fluctuations may impact NAV.
• Liquidity risk due to limited secondary market availability for some instruments.
• Credit risk arises when issuers may default on interest or principal payments.
• Prepayment risk, where early redemption by issuers may reduce reinvestment returns.
• Reinvestment risk, if proceeds need to be reinvested at lower interest rates.
• Settlement delays could hinder cash flow realisation or cause missed opportunities.
• Investment in unlisted securities could increase price volatility and reduce liquidity.

Risk Mitigation Strategy by the JioBlackRock Overnight Fund

The JioBlackRock Overnight Fund - Direct (G) follows a robust, multi-layered risk management approach. The AMC has an independent Risk Management team and a dedicated Risk Management Committee at the board level to ensure adherence to internal risk controls. The portfolio construction process involves thorough credit evaluation, selection of high-credit-quality issuers, and preference for highly liquid securities. Volatility risk is reduced by diversifying across issuers and sectors. Interest rate risk is managed through careful security selection and maturity alignment. Overall, the scheme focuses on prudent asset allocation and continuous risk monitoring to safeguard investor interests.

What Type of Investor Should Invest in JioBlackRock Overnight Fund?

• Investors with a low-risk appetite seeking short-term, stable returns.
• Individuals or institutions looking for efficient daily cash management.
• Investors seeking alternatives to savings accounts or fixed deposits for surplus funds.
• Those who prefer high liquidity and minimal market volatility exposure.
• Suitable for parking funds for very short durations with limited credit risk.