+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 ₹3,557.65
↑ 0.50 ₹5,505 1.3 2.7 6 6.4 6.7 5.4% 2D 2D SBI Overnight Fund Growth ₹4,217.47
↑ 0.59 ₹23,903 1.3 2.7 6 6.3 6.6 5.41% 1D 1D HDFC Overnight Fund Growth ₹3,857.77
↑ 0.54 ₹11,247 1.3 2.7 5.9 6.3 6.6 5.4% 1D 1D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 8 Oct 25 Research Highlights & Commentary of 3 Funds showcased
Commentary UTI Overnight Fund SBI Overnight Fund HDFC Overnight Fund Point 1 Bottom quartile AUM (₹5,505 Cr). Highest AUM (₹23,903 Cr). Lower mid AUM (₹11,247 Cr). Point 2 Established history (21+ yrs). Oldest track record among peers (23 yrs). Established history (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: 6.04% (upper mid). 1Y return: 5.99% (lower mid). 1Y return: 5.95% (bottom quartile). Point 6 1M return: 0.44% (upper mid). 1M return: 0.44% (lower mid). 1M return: 0.43% (bottom quartile). Point 7 Sharpe: -9.49 (upper mid). Sharpe: -10.39 (lower mid). Sharpe: -23.46 (bottom quartile). 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): 5.40% (lower mid). Yield to maturity (debt): 5.41% (upper mid). Yield to maturity (debt): 5.40% (bottom quartile). Point 10 Modified duration: 0.01 yrs (bottom quartile). Modified duration: 0.00 yrs (upper mid). Modified duration: 0.00 yrs (lower mid). UTI Overnight Fund
SBI Overnight Fund
HDFC Overnight Fund
1. UTI Overnight Fund
UTI Overnight Fund
Growth Launch Date 24 Nov 03 NAV (08 Oct 25) ₹3,557.65 ↑ 0.50 (0.01 %) Net Assets (Cr) ₹5,505 on 31 Aug 25 Category Debt - Overnight AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately Low Expense Ratio 0.11 Sharpe Ratio -9.5 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.4% Effective Maturity 2 Days Modified Duration 2 Days Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,304 30 Sep 22 ₹10,711 30 Sep 23 ₹11,400 30 Sep 24 ₹12,170 30 Sep 25 ₹12,907 Returns for UTI Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.7% 1 Year 6% 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 0.61 Yr. Data below for UTI Overnight Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 98.37% Government 1.63% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -95% ₹5,208 Cr India (Republic of)
- | -2% ₹90 Cr 900,000,000
↑ 900,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -1% ₹65 Cr 650,000,000 Treasury Bills
Sovereign Bonds | -1% ₹65 Cr 650,000,000
↑ 650,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -1% ₹30 Cr 300,000,000 364 DTB 03102025
Sovereign Bonds | -0% ₹25 Cr 250,000,000
↑ 250,000,000 Clearing Corporation Of India Ltd. Std - Margin
Net Current Assets | -0% ₹13 Cr 00 182 Days Tbill
Sovereign Bonds | -0% ₹10 Cr 100,000,000 Amc Repo Clearing Limited Std - Margin
Net Current Assets | -0% ₹0 Cr 00 182 Days Tbill
Sovereign Bonds | -₹0 Cr 00
↓ -750,000,000 2. SBI Overnight Fund
SBI Overnight Fund
Growth Launch Date 1 Oct 02 NAV (08 Oct 25) ₹4,217.47 ↑ 0.59 (0.01 %) Net Assets (Cr) ₹23,903 on 31 Aug 25 Category Debt - Overnight AMC SBI Funds Management Private Limited Rating ☆☆ Risk Low Expense Ratio 0.15 Sharpe Ratio -10.39 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 5.41% Effective Maturity 1 Day Modified Duration 1 Day Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,302 30 Sep 22 ₹10,704 30 Sep 23 ₹11,386 30 Sep 24 ₹12,145 30 Sep 25 ₹12,876 Returns for SBI Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.7% 1 Year 6% 3 Year 6.3% 5 Year 5.2% 10 Year 15 Year Since launch 6.4% 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 0.68 Yr. Data below for SBI Overnight Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 98.31% Government 1.06% Corporate 0.63% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -56% ₹13,440 Cr Reverse Repo
CBLO/Reverse Repo | -32% ₹7,721 Cr National Bank For Agriculture And Rural Development
Commercial Paper | -4% ₹1,050 Cr 21,000
↑ 21,000 HDFC Securities Limited
Commercial Paper | -1% ₹300 Cr 6,000
↑ 6,000 India (Republic of)
- | -1% ₹254 Cr 25,500,000
↑ 25,500,000 ICICI Home Finance Company Limited
Commercial Paper | -1% ₹250 Cr 5,000
↑ 5,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -1% ₹250 Cr 25,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -1% ₹250 Cr 25,000,000 Treasury Bills
Sovereign Bonds | -1% ₹249 Cr 25,000,000
↑ 25,000,000 Union Bank Of India
Certificate of Deposit | -1% ₹150 Cr 3,000
↑ 3,000 3. HDFC Overnight Fund
HDFC Overnight Fund
Growth Launch Date 6 Feb 02 NAV (08 Oct 25) ₹3,857.77 ↑ 0.54 (0.01 %) Net Assets (Cr) ₹11,247 on 31 Aug 25 Category Debt - Overnight AMC HDFC Asset Management Company Limited Rating ☆ Risk Low Expense Ratio 0.18 Sharpe Ratio -23.46 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.4% Effective Maturity 1 Day Modified Duration 1 Day Growth of 10,000 investment over the years.
Date Value 30 Sep 20 ₹10,000 30 Sep 21 ₹10,298 30 Sep 22 ₹10,695 30 Sep 23 ₹11,374 30 Sep 24 ₹12,132 30 Sep 25 ₹12,857 Returns for HDFC Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Oct 25 Duration Returns 1 Month 0.4% 3 Month 1.3% 6 Month 2.7% 1 Year 5.9% 3 Year 6.3% 5 Year 5.2% 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 0.5 Yr. Data below for HDFC Overnight Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 99.03% Government 0.97% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -61% ₹6,818 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -33% ₹3,695 Cr Net Current Assets
Net Current Assets | -4% ₹399 Cr Treasury Bills
Sovereign Bonds | -2% ₹224 Cr 22,500,000
↑ 22,500,000 India (Republic of)
- | -1% ₹110 Cr 11,000,000
↑ 11,000,000 182 Days Tbill
Sovereign Bonds | -₹0 Cr 00
↓ -27,500,000 182 Days Tbill
Sovereign Bonds | -₹0 Cr 00
↓ -15,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -₹0 Cr 00
↓ -11,500,000
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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