Table of Contents
- What is Overnight Mutual Funds?
- Why to Invest in Overnight Funds?
- Best Overnight Funds to Invest in India FY 24 - 25
- How Invest in Best Overnight Funds?
- FAQs
- 1. What are the capital gains earnings from these funds?
- 2. Are these funds taxable?
- 3. What are the two most important criteria that I should evaluate while selecting overnight funds?
- 4. How do overnight funds realize the investment?
- 5. Is it safe to invest in overnight mutual funds?
- 6. Is there any minimum amount that I need to invest in overnight mutual funds?
- 7. What are the best features of overnight mutual funds?
Top 4 Debt - Overnight Funds
4 Best Overnight Mutual Funds 2024
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 24 - 25
(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 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. 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 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. 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 Below is the key information for HDFC Overnight Fund Returns up to 1 year are on 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 Below is the key information for L&T Cash Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity UTI Overnight Fund Growth ₹3,397.79
↑ 0.61 ₹6,025 1.6 3.2 6.7 5.9 6.6 6.67% 2D 2D SBI Overnight Fund Growth ₹4,029.37
↑ 0.72 ₹20,802 1.6 3.2 6.6 5.9 6.6 6.66% 1D 1D HDFC Overnight Fund Growth ₹3,686.9
↑ 0.65 ₹12,133 1.6 3.2 6.6 5.9 6.5 6.31% 3D 4D L&T Cash Fund Growth ₹1,627.38
↑ 0.18 ₹1,105 1.4 2.6 4.3 3.5 0% Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Dec 24 1. UTI Overnight Fund
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% . UTI Overnight Fund
Growth Launch Date 24 Nov 03 NAV (20 Dec 24) ₹3,397.79 ↑ 0.61 (0.02 %) Net Assets (Cr) ₹6,025 on 30 Nov 24 Category Debt - Overnight AMC UTI Asset Management Company Ltd Rating ☆☆ Risk Moderately Low Expense Ratio 0.11 Sharpe Ratio -17.16 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.67% Effective Maturity 2 Days Modified Duration 2 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,351 30 Nov 21 ₹10,672 30 Nov 22 ₹11,142 30 Nov 23 ₹11,875 30 Nov 24 ₹12,669 Returns for UTI Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.2% 1 Year 6.7% 3 Year 5.9% 5 Year 4.9% 10 Year 15 Year Since launch 6% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Ritesh Nambiar 1 Oct 24 0.17 Yr. Data below for UTI Overnight Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 100% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -95% ₹5,745 Cr 191 DTB 12/12/2024
Sovereign Bonds | -2% ₹100 Cr 1,000,000,000
↑ 1,000,000,000 182 DTB 05122024
Sovereign Bonds | -1% ₹75 Cr 750,000,000
↑ 750,000,000 182 DTB 12122024
Sovereign Bonds | -1% ₹50 Cr 500,000,000
↑ 500,000,000 91 DTB 05122024
Sovereign Bonds | -0% ₹25 Cr 250,000,000
↑ 250,000,000 364 DTB 12122024
Sovereign Bonds | -0% ₹25 Cr 250,000,000
↑ 250,000,000 Clearing Corporation Of India Ltd. Std - Margin
CBLO/Reverse Repo | -0% ₹5 Cr 00 Amc Repo Clearing Limited Std - Margin
CBLO/Reverse Repo | -0% ₹0 Cr 00 182 DTB 18112024
Sovereign Bonds | -₹0 Cr 00
↓ -900,000,000 91 DTB 21112024
Sovereign Bonds | -₹0 Cr 00
↓ -500,000,000 2. SBI Overnight Fund
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% . SBI Overnight Fund
Growth Launch Date 1 Oct 02 NAV (20 Dec 24) ₹4,029.37 ↑ 0.72 (0.02 %) Net Assets (Cr) ₹20,802 on 15 Dec 24 Category Debt - Overnight AMC SBI Funds Management Private Limited Rating ☆☆ Risk Low Expense Ratio 0.18 Sharpe Ratio -19.96 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 6.66% Effective Maturity 1 Day Modified Duration 1 Day Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,345 30 Nov 21 ₹10,664 30 Nov 22 ₹11,128 30 Nov 23 ₹11,854 30 Nov 24 ₹12,637 Returns for SBI Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.2% 1 Year 6.6% 3 Year 5.9% 5 Year 4.8% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure R. Arun 1 Apr 12 12.68 Yr. Data below for SBI Overnight Fund as on 15 Dec 24
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 100% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -92% ₹18,499 Cr Reverse Repo
CBLO/Reverse Repo | -7% ₹1,500 Cr 182 DTB 12122024
Sovereign Bonds | -1% ₹150 Cr 15,000,000
↑ 15,000,000 Net Receivable / Payable
CBLO | -0% -₹17 Cr 3. HDFC Overnight Fund
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% . HDFC Overnight Fund
Growth Launch Date 6 Feb 02 NAV (20 Dec 24) ₹3,686.9 ↑ 0.65 (0.02 %) Net Assets (Cr) ₹12,133 on 30 Nov 24 Category Debt - Overnight AMC HDFC Asset Management Company Limited Rating ☆ Risk Low Expense Ratio 0.19 Sharpe Ratio -14.74 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.31% Effective Maturity 4 Days Modified Duration 3 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,340 30 Nov 21 ₹10,655 30 Nov 22 ₹11,115 30 Nov 23 ₹11,836 30 Nov 24 ₹12,617 Returns for HDFC Overnight Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.2% 1 Year 6.6% 3 Year 5.9% 5 Year 4.8% 10 Year 15 Year Since launch 5.9% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Anil Bamboli 25 Jul 12 12.36 Yr. Data below for HDFC Overnight Fund as on 30 Nov 24
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 100% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -81% ₹9,273 Cr Treps - Tri-Party Repo
CBLO/Reverse Repo | -14% ₹1,583 Cr 182 DTB 12122024
Sovereign Bonds | -2% ₹189 Cr 19,000,000
↑ 19,000,000 91 DTB 21112024
Sovereign Bonds | -2% ₹185 Cr 18,500,000
↑ 15,000,000 182 DTB 05122024
Sovereign Bonds | -0% ₹50 Cr 5,000,000
↑ 5,000,000 Net Current Assets
Net Current Assets | -0% ₹49 Cr 182 DTB 18112024
Sovereign Bonds | -0% ₹40 Cr 4,000,000 182 DTB 28112024
Sovereign Bonds | -0% ₹25 Cr 2,500,000 91 DTB 28112024
Sovereign Bonds | -0% ₹10 Cr 1,000,000
↑ 1,000,000 182 DTB 14112024
Sovereign Bonds | -₹0 Cr 00
↓ -5,500,000 4. L&T Cash Fund
CAGR/Annualized return of 6.4% since its launch. Ranked 67 in Overnight category. . 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.
Date Value 30 Nov 19 ₹10,000 30 Nov 20 ₹10,322 30 Nov 21 ₹10,639 Returns for L&T Cash Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Dec 24 Duration Returns 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
Year Returns 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Fund Manager information for L&T Cash Fund
Name Since Tenure Data below for L&T Cash Fund as on 15 Nov 22
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity
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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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