fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
LOG IN
SIGN UP

Fincash » Mutual Funds » Best Overnight Funds

4 Best Overnight Mutual Funds 2024

Updated on May 14, 2024 , 54992 views

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.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Best Overnight Funds to Invest in India FY 24 - 25

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
UTI Overnight Fund Growth ₹3,270.85
↑ 0.56
₹2,9781.63.36.75.36.66.94%3D3D
SBI Overnight Fund Growth ₹3,880.18
↑ 0.66
₹14,3321.63.36.75.26.66.68%1D1D
HDFC Overnight Fund Growth ₹3,551.26
↑ 0.60
₹6,7541.63.36.75.26.56.71%3D4D
L&T Cash Fund Growth ₹1,627.38
↑ 0.18
₹1,1051.42.64.33.5 0%
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 May 24

1. UTI Overnight Fund

(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.

UTI Overnight Fund is a Debt - Overnight fund was launched on 24 Nov 03. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 6% since its launch.  Ranked 5 in Overnight category.  Return for 2023 was 6.6% , 2022 was 4.6% and 2021 was 3.1% .

Below is the key information for UTI Overnight Fund

UTI Overnight Fund
Growth
Launch Date 24 Nov 03
NAV (16 May 24) ₹3,270.85 ↑ 0.56   (0.02 %)
Net Assets (Cr) ₹2,978 on 31 Mar 24
Category Debt - Overnight
AMC UTI Asset Management Company Ltd
Rating
Risk Moderately Low
Expense Ratio 0.12
Sharpe Ratio -4.03
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.94%
Effective Maturity 3 Days
Modified Duration 3 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹10,491
30 Apr 21₹10,807
30 Apr 22₹11,159
30 Apr 23₹11,789
30 Apr 24₹12,586

UTI Overnight Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹194,235.
Net Profit of ₹14,235
Invest Now

Returns for UTI Overnight Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 May 24

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.3%
1 Year 6.7%
3 Year 5.3%
5 Year 4.7%
10 Year
15 Year
Since launch 6%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 8.4%
Fund Manager information for UTI Overnight Fund
NameSinceTenure
Amit Sharma3 May 185.92 Yr.

Data below for UTI Overnight Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent98.56%
Government1.44%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
95%₹5,965 Cr
91 DTB 25042024
Sovereign Bonds | -
2%₹100 Cr1,000,000,000
↑ 1,000,000,000
India (Republic of)
- | -
1%₹90 Cr900,000,000
182 DTB 18042024
Sovereign Bonds | -
1%₹50 Cr500,000,000
91 DTB 02052024
Sovereign Bonds | -
1%₹50 Cr500,000,000
↑ 500,000,000
Clearing Corporation Of India Ltd. Std - Margin
Net Current Assets | -
0%₹10 Cr00
Amc Repo Clearing Limited Std - Margin
Net Current Assets | -
0%₹1 Cr00
182 DTB 04042024
Sovereign Bonds | -
₹0 Cr00
↓ -500,000,000
182 DTB 11042024
Sovereign Bonds | -
₹0 Cr00
↓ -500,000,000
91 DTB 11042024
Sovereign Bonds | -
₹0 Cr00
↓ -500,000,000

2. SBI Overnight Fund

(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.

SBI Overnight Fund is a Debt - Overnight fund was launched on 1 Oct 02. It is a fund with Low risk and has given a CAGR/Annualized return of 6.5% since its launch.  Ranked 59 in Overnight category.  Return for 2023 was 6.6% , 2022 was 4.6% and 2021 was 3.1% .

Below is the key information for SBI Overnight Fund

SBI Overnight Fund
Growth
Launch Date 1 Oct 02
NAV (16 May 24) ₹3,880.18 ↑ 0.66   (0.02 %)
Net Assets (Cr) ₹14,332 on 31 Mar 24
Category Debt - Overnight
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.18
Sharpe Ratio -31
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 6.68%
Effective Maturity 1 Day
Modified Duration 1 Day

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹10,487
30 Apr 21₹10,799
30 Apr 22₹11,148
30 Apr 23₹11,772
30 Apr 24₹12,557

SBI Overnight Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹194,235.
Net Profit of ₹14,235
Invest Now

Returns for SBI Overnight Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 May 24

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.3%
1 Year 6.7%
3 Year 5.2%
5 Year 4.7%
10 Year
15 Year
Since launch 6.5%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 8.7%
Fund Manager information for SBI Overnight Fund
NameSinceTenure
R. Arun1 Apr 1212.01 Yr.

Data below for SBI Overnight Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent100%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Treps
CBLO/Reverse Repo | -
68%₹15,048 Cr
Reverse Repo
CBLO/Reverse Repo | -
30%₹6,646 Cr
91 DTB 25042024
Sovereign Bonds | -
1%₹250 Cr25,000,000
↑ 25,000,000
91 DTB 02052024
Sovereign Bonds | -
1%₹214 Cr21,500,000
↑ 21,500,000
Net Receivable / Payable
CBLO | -
0%₹92 Cr

3. HDFC Overnight Fund

(Erstwhile HDFC Cash Management Fund - Call Plan)

The investment objective of the Scheme is to generate optimal returns while maintaining safety and high liquidity.

HDFC Overnight Fund is a Debt - Overnight fund was launched on 6 Feb 02. It is a fund with Low risk and has given a CAGR/Annualized return of 5.9% since its launch.  Ranked 64 in Overnight category.  Return for 2023 was 6.5% , 2022 was 4.6% and 2021 was 3.1% .

Below is the key information for HDFC Overnight Fund

HDFC Overnight Fund
Growth
Launch Date 6 Feb 02
NAV (16 May 24) ₹3,551.26 ↑ 0.60   (0.02 %)
Net Assets (Cr) ₹6,754 on 31 Mar 24
Category Debt - Overnight
AMC HDFC Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.2
Sharpe Ratio -4.26
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.71%
Effective Maturity 4 Days
Modified Duration 3 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹10,482
30 Apr 21₹10,788
30 Apr 22₹11,131
30 Apr 23₹11,752
30 Apr 24₹12,536

HDFC Overnight Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹194,235.
Net Profit of ₹14,235
Invest Now

Returns for HDFC Overnight Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 May 24

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.3%
1 Year 6.7%
3 Year 5.2%
5 Year 4.6%
10 Year
15 Year
Since launch 5.9%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2014 8.2%
Fund Manager information for HDFC Overnight Fund
NameSinceTenure
Anil Bamboli25 Jul 1211.69 Yr.

Data below for HDFC Overnight Fund as on 31 Mar 24

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent97.67%
Government2.33%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
72%₹8,385 Cr
Treps - Tri-Party Repo
CBLO/Reverse Repo | -
23%₹2,616 Cr
India (Republic of)
- | -
2%₹270 Cr27,000,000
182 DTB 02052024
Sovereign Bonds | -
1%₹125 Cr12,500,000
↑ 12,500,000
182 DTB 09052024
Sovereign Bonds | -
1%₹100 Cr10,000,000
↑ 10,000,000
Net Current Assets
Net Current Assets | -
1%₹58 Cr
91 DTB 02052024
Sovereign Bonds | -
0%₹50 Cr5,000,000
↑ 5,000,000
91 DTB 11042024
Sovereign Bonds | -
₹0 Cr00
↓ -17,500,000

4. L&T Cash Fund

To deliver reasonable returns with lower volatility and higher liquidity through a portfolio of debt and money market instruments.

L&T Cash Fund is a Debt - Overnight fund was launched on 27 Nov 06. It is a fund with Low risk and has given a CAGR/Annualized return of 6.4% since its launch.  Ranked 67 in Overnight category. .

Below is the key information for L&T Cash Fund

L&T Cash Fund
Growth
Launch Date 27 Nov 06
NAV (25 Nov 22) ₹1,627.38 ↑ 0.18   (0.01 %)
Net Assets (Cr) ₹1,105 on 15 Nov 22
Category Debt - Overnight
AMC L&T Investment Management Ltd
Rating
Risk Low
Expense Ratio 0.2
Sharpe Ratio -16.29
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 0%
Effective Maturity
Modified Duration

Growth of 10,000 investment over the years.

DateValue
30 Apr 19₹10,000
30 Apr 20₹10,427
30 Apr 21₹10,735
30 Apr 22₹11,081

L&T Cash Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹194,235.
Net Profit of ₹14,235
Invest Now

Returns for L&T Cash Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 May 24

DurationReturns
1 Month 0.5%
3 Month 1.4%
6 Month 2.6%
1 Year 4.3%
3 Year 3.5%
5 Year 4.2%
10 Year
15 Year
Since launch 6.4%
Historical performance (Yearly) on absolute basis
YearReturns
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Fund Manager information for L&T Cash Fund
NameSinceTenure

Data below for L&T Cash Fund as on 15 Nov 22

Asset Allocation
Asset ClassValue
Debt Sector Allocation
SectorValue
Credit Quality
RatingValue
Top Securities Holdings / Portfolio
NameHoldingValueQuantity

How Invest in Best Overnight Funds?

  1. Open Free Investment Account for Lifetime at Fincash.com

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

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.

Disclaimer:
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.
How helpful was this page ?
Rated 4.4, based on 36 reviews.
POST A COMMENT