+91-22-489139094 Best Overnight Mutual Funds 2025
Overnight funds are a Debt fund that invests in Bonds that mature in one day! Does it sound crazy? It's a fact. The Security and Exchange Board of India (SEBI) has introduced an overnight fund as a category in debt funds.
The aim of this fund is to allow even the smallest investor or a corporate to invest even for one night in debt funds anywhere in India. Overnight funds can be an alternative avenue for idle monies where an investor can earn good returns with low-risk or no risk at all.
What is Overnight Mutual Funds?
An overnight fund is a type of mutual fund that matures in one day. At the start of each Business Day, the entire Asset Under Management (AUM) would be in cash, overnight bonds would be purchased. These bonds will mature the next business day, the fund managers of these funds would take the cash and buy more overnight bonds / reverse repo instrument.
Here, the bond matures the next business day, and the price will not be affected if the Reserve Bank of India (RBI) changes the interest rates as they are linked to prevailing reverse repo rates. The next day, bond matures and new overnight bonds are purchased at the new price. Even if the credit rating of the bond issuer changes, the bond price of this fund will not be affected as it will mature the next day.
Overnight funds carry lower maturity than typical Liquid Funds, so the returns of these funds will also be a bit lower.
Why to Invest in Overnight Funds?
Ideally, anyone who wants to park their surplus corpus without worrying about returns with the least amount of risk can invest in overnight funds. These funds can also act as an emergency fund. Investors who want to do a safe investment as a backup for medical emergencies or any other emergency can consider these funds.
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Best Overnight Funds to Invest in India FY 25 - 26
(Erstwhile UTI G-Sec Fund - Short Term Plan) To generate credit risk-free return by way of income or growth by investing in Central Government Securities, Treasury Bills, Call Money and Repos. Under normal circumstances at least 65% of the total portfolio will be invested in securities issued/created by the Central Government. Below is the key information for UTI Overnight Fund Returns up to 1 year are on (Erstwhile SBI Magnum InstaCash Fund - Liquid Floater Plan) To mitigate interest rate risk and generate opportunities for regular
income through a portfolio investing predominantly in floating rate securities
and Money Market instruments. Research Highlights for SBI Overnight Fund Below is the key information for SBI Overnight Fund Returns up to 1 year are on (Erstwhile HDFC Cash Management Fund - Call Plan) The investment objective of the Scheme is to generate optimal returns while maintaining safety and high liquidity. Research Highlights for HDFC Overnight Fund Below is the key information for HDFC Overnight Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity UTI Overnight Fund Growth ₹3,533.42
↑ 0.52 ₹4,171 1.3 2.8 6.2 6.4 6.7 5.43% 2D 2D SBI Overnight Fund Growth ₹4,188.93
↑ 0.61 ₹23,034 1.3 2.8 6.1 6.3 6.6 5.44% 1D 1D HDFC Overnight Fund Growth ₹3,831.91
↑ 0.55 ₹11,147 1.3 2.8 6.1 6.3 6.6 5.46% 2D 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 25 Research Highlights & Commentary of 3 Funds showcased
Commentary UTI Overnight Fund SBI Overnight Fund HDFC Overnight Fund Point 1 Bottom quartile AUM (₹4,171 Cr). Highest AUM (₹23,034 Cr). Lower mid AUM (₹11,147 Cr). Point 2 Established history (21+ yrs). Established history (22+ yrs). Oldest track record among peers (23 yrs). Point 3 Top rated. Rating: 2★ (lower mid). Rating: 1★ (bottom quartile). Point 4 Risk profile: Moderately Low. Risk profile: Low. Risk profile: Low. Point 5 1Y return: 6.18% (upper mid). 1Y return: 6.13% (lower mid). 1Y return: 6.09% (bottom quartile). Point 6 1M return: 0.45% (upper mid). 1M return: 0.45% (lower mid). 1M return: 0.44% (bottom quartile). Point 7 Sharpe: -20.38 (upper mid). Sharpe: -22.92 (bottom quartile). Sharpe: -22.28 (lower mid). Point 8 Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 5.43% (bottom quartile). Yield to maturity (debt): 5.44% (lower mid). Yield to maturity (debt): 5.46% (upper mid). Point 10 Modified duration: 0.01 yrs (lower mid). Modified duration: 0.00 yrs (upper mid). Modified duration: 0.01 yrs (bottom quartile). UTI Overnight Fund
SBI Overnight Fund
HDFC Overnight Fund
1. UTI Overnight Fund
UTI Overnight Fund
Growth Launch Date 24 Nov 03 NAV (22 Aug 25) ₹3,533.42 ↑ 0.52 (0.01 %) Net Assets (Cr) ₹4,171 on 31 Jul 25 Category Debt - Overnight AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately Low Expense Ratio 0.11 Sharpe Ratio -20.38 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.43% Effective Maturity 2 Days Modified Duration 2 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,305 31 Jul 22 ₹10,674 31 Jul 23 ₹11,334 31 Jul 24 ₹12,102 31 Jul 25 ₹12,859 Returns for UTI Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.8% 1 Year 6.2% 3 Year 6.4% 5 Year 5.2% 10 Year 15 Year Since launch 6% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.7% 2023 6.6% 2022 4.6% 2021 3.1% 2020 3.4% 2019 5.6% 2018 5.9% 2017 5.1% 2016 8.9% 2015 8.1% Fund Manager information for UTI Overnight Fund
Name Since Tenure Jaydeep Bhowal 21 Jan 25 0.52 Yr. Data below for UTI Overnight Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 95.96% Government 4.04% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -95% ₹4,575 Cr India (Republic of)
- | -2% ₹75 Cr 750,000,000
↑ 750,000,000 India (Republic of)
- | -1% ₹70 Cr 700,000,000 India (Republic of)
- | -1% ₹50 Cr 500,000,000
↑ 500,000,000 Clearing Corporation Of India Ltd. Std - Margin
CBLO/Reverse Repo | -0% ₹16 Cr 00 364 DTB 24072025
Sovereign Bonds | -0% ₹15 Cr 150,000,000 182 Days Tbill
Sovereign Bonds | -0% ₹15 Cr 150,000,000
↑ 150,000,000 182 DTB 31072025
Sovereign Bonds | -0% ₹10 Cr 100,000,000
↑ 100,000,000 Amc Repo Clearing Limited Std - Margin
CBLO/Reverse Repo | -0% ₹0 Cr 00 India (Republic of)
- | -₹0 Cr 00
↓ -750,000,000 2. SBI Overnight Fund
SBI Overnight Fund
Growth Launch Date 1 Oct 02 NAV (22 Aug 25) ₹4,188.93 ↑ 0.61 (0.01 %) Net Assets (Cr) ₹23,034 on 31 Jul 25 Category Debt - Overnight AMC SBI Funds Management Private Limited Rating ☆☆ Risk Low Expense Ratio 0.15 Sharpe Ratio -22.93 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 2,000 Exit Load 0-1 Months (0.2%),1 Months and above(NIL) Yield to Maturity 5.44% Effective Maturity 1 Day Modified Duration 1 Day Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,302 31 Jul 22 ₹10,667 31 Jul 23 ₹11,321 31 Jul 24 ₹12,078 31 Jul 25 ₹12,827 Returns for SBI Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.8% 1 Year 6.1% 3 Year 6.3% 5 Year 5.1% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.6% 2023 6.6% 2022 4.6% 2021 3.1% 2020 3.3% 2019 5.6% 2018 6.2% 2017 5.8% 2016 6.8% 2015 7.8% Fund Manager information for SBI Overnight Fund
Name Since Tenure Ranjana Gupta 27 Dec 24 0.59 Yr. Data below for SBI Overnight Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 96.04% Corporate 2.32% Government 1.64% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -64% ₹15,611 Cr Reverse Repo
CBLO/Reverse Repo | -30% ₹7,287 Cr Axis Bank Limited
Certificate of Deposit | -2% ₹565 Cr 11,300
↑ 11,300 182 DTB 17072025
Sovereign Bonds | -1% ₹350 Cr 35,000,000 Net Receivable / Payable
CBLO | -1% -₹334 Cr India (Republic of)
- | -1% ₹299 Cr 30,000,000
↑ 30,000,000 364 DTB 31072025
Sovereign Bonds | -1% ₹274 Cr 27,500,000
↑ 27,500,000 182 DTB 31072025
Sovereign Bonds | -1% ₹175 Cr 17,500,000
↑ 17,500,000 India (Republic of)
- | -0% ₹100 Cr 10,000,000
↑ 10,000,000 HDFC Bank Limited
Certificate of Deposit | -₹0 Cr 00
↓ -17,000 3. HDFC Overnight Fund
HDFC Overnight Fund
Growth Launch Date 6 Feb 02 NAV (22 Aug 25) ₹3,831.91 ↑ 0.55 (0.01 %) Net Assets (Cr) ₹11,147 on 31 Jul 25 Category Debt - Overnight AMC HDFC Asset Management Company Limited Rating ☆ Risk Low Expense Ratio 0.18 Sharpe Ratio -22.29 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.46% Effective Maturity 2 Days Modified Duration 2 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹10,297 31 Jul 22 ₹10,658 31 Jul 23 ₹11,309 31 Jul 24 ₹12,065 31 Jul 25 ₹12,808 Returns for HDFC Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.8% 1 Year 6.1% 3 Year 6.3% 5 Year 5.1% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.6% 2023 6.5% 2022 4.6% 2021 3.1% 2020 3.2% 2019 5.6% 2018 6.1% 2017 5.9% 2016 6.4% 2015 7.3% Fund Manager information for HDFC Overnight Fund
Name Since Tenure Swapnil Jangam 1 Mar 25 0.42 Yr. Data below for HDFC Overnight Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 98.9% Government 1.1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps - Tri-Party Repo
CBLO/Reverse Repo | -52% ₹5,888 Cr Reverse Repo
CBLO/Reverse Repo | -43% ₹4,917 Cr 182 DTB 17072025
Sovereign Bonds | -2% ₹245 Cr 24,500,000
↑ 2,500,000 364 DTB 24072025
Sovereign Bonds | -1% ₹100 Cr 10,000,000
↑ 10,000,000 India (Republic of)
- | -1% ₹90 Cr 9,000,000
↑ 9,000,000 Net Current Assets
Net Current Assets | -1% ₹62 Cr 364 DTB 18072025
Sovereign Bonds | -1% ₹60 Cr 6,000,000 India (Republic of)
- | -0% ₹25 Cr 2,500,000
↑ 2,500,000 India (Republic of)
- | -0% ₹10 Cr 1,000,000 India (Republic of)
- | -₹0 Cr 00
↓ -9,000,000
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FAQs
1. What are the capital gains earnings from these funds?
A: There are no chances of earning Capital gains from these funds as you will realize your investment overnight. These securities are held for one day, and the funds mature overnight. Hence, there are no Capital Gains Earnings from overnight funds?
2. Are these funds taxable?
A: The dividends earned from overnight Mutual Funds are not taxable. However, if you have a Portfolio of overnight mutual funds that you have held for longer than three years, then it will fall under long-term capital gains. The taxable amount is then reduced due to indexation, and you will have to pay Taxes at a lower rate of 20%. But if you sell it before three years, you will have to pay short-term capital gains tax. Thus, depending on how you Handle your overnight mutual funds, you are liable to pay taxes.
3. What are the two most important criteria that I should evaluate while selecting overnight funds?
A: Before you invest in an overnight mutual fund, you must check for two factors regarding the fund. The first being the expense ratio and the second being the returns. Since overnight funds mature within a day, you will have to calculate the returns for a week or a month. For example, UTI Overnight Fund has a NAV of Rs.2,797.33 and an ROI of 0.7%, and compared to that; the SBI Overnight Fund has a NAV of Rs.3323.73 and ROI of 0.7%. Thus, based on the money you want to invest, you can select a suitable fund.
4. How do overnight funds realize the investment?
A: The overnight funds invest in the reverse repo, which has quick returns. Hence, it can provide the investors quick returns as well.
5. Is it safe to invest in overnight mutual funds?
A: Overnight mutual funds are one of the safest investments. As you can realize your investment within twenty-four hours, it is considered one of the low-risk investments. Hence, it is ideal for investors who have a low-risk appetite.
6. Is there any minimum amount that I need to invest in overnight mutual funds?
A: There is no particular minimum amount that needs to be invested in the overnight mutual funds. You can invest as per your choice. However, you can start your investment as low as Rs. 1000.
7. What are the best features of overnight mutual funds?
A: The best feature of the overnight mutual fund is the accessible withdrawal Facility. Overnight funds also offer flexibility and excellent liquidity, unlike other funds. This makes the investment safe and suitable for individuals who have a conservative approach towards mutual fund investments.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Research Highlights for UTI Overnight Fund