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- Overnight Funds
- Average Return 5.13%
- No of Funds 27
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What is Overnight Mutual Fund
Overnight funds are debt funds that lend to corporates for 1 business day. The corporates eligible for borrowing through this route are regulated and are mostly banks, insurance companies, mutual funds, provident funds, and NBFCs
Advantages of Overnight Funds
- Safest debt funds which can be used for parking money for few days
- No risk of default as borrowers needed to give prescribed securities as collateral
- Zero-risk means you have to settle for low returns
Top schemes of Overnight Mutual Funds sorted by last 5 year returns
27 funds
Sort by:
- Returns High to Low
- ETM Rank High to Low
- Fund Size High to Low
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- Annualized
- Absolute
Returns for
- 1 Month
- 3 Months
- 6 Months
- 1 year
- 3 years
- 5 years
via
- Monthly SIP
- One-time (Lumpsum)
Axis Overnight Fund
Unranked
Fund Size
₹10,499 Crs
Return (p.a)
+ 6.74%+ 0.5% + 6.81%+ 1.07% + 6.86%+ 1.93% + 6.84%+ 3.65% + 5.97%+ 9.47% + 5.16%+ 13.94%
ETM Rank
Unranked
Invest
DSP Overnight Fund
#7 of 9
Fund Size
₹2,902 Crs
Return (p.a)
+ 6.68%+ 0.5% + 6.78%+ 1.06% + 6.84%+ 1.92% + 6.82%+ 3.64% + 5.96%+ 9.45% + 5.16%+ 13.93%
ETM Rank
#7 of 9
Invest
Nippon India Overnight Fund
#2 of 9
Fund Size
₹5,745 Crs
Return (p.a)
+ 6.72%+ 0.5% + 6.8%+ 1.07% + 6.85%+ 1.93% + 6.82%+ 3.64% + 5.96%+ 9.45% + 5.16%+ 13.91%
ETM Rank
#2 of 9
Invest
Aditya Birla Sun Life Overnight Fund
#1 of 9
Fund Size
₹6,474 Crs
Return (p.a)
+ 6.7%+ 0.5% + 6.78%+ 1.07% + 6.83%+ 1.92% + 6.81%+ 3.63% + 5.95%+ 9.43% + 5.14%+ 13.88%
ETM Rank
#1 of 9
Invest
UTI Overnight Fund
#4 of 9
Fund Size
₹5,570 Crs
Return (p.a)
+ 6.69%+ 0.5% + 6.77%+ 1.07% + 6.84%+ 1.92% + 6.81%+ 3.63% + 5.94%+ 9.42% + 5.14%+ 13.86%
ETM Rank
#4 of 9
Invest
Kotak Overnight Fund
#6 of 9
Fund Size
₹7,189 Crs
Return (p.a)
+ 6.69%+ 0.5% + 6.77%+ 1.06% + 6.83%+ 1.92% + 6.81%+ 3.63% + 5.95%+ 9.43% + 5.14%+ 13.86%
ETM Rank
#6 of 9
Invest
Bandhan Overnight Fund
#5 of 9
Fund Size
₹1,834 Crs
Return (p.a)
+ 6.71%+ 0.5% + 6.79%+ 1.07% + 6.85%+ 1.93% + 6.82%+ 3.64% + 5.94%+ 9.42% + 5.13%+ 13.84%
ETM Rank
#5 of 9
Invest
ICICI Prudential Overnight Fund
#8 of 9
Fund Size
₹11,582 Crs
Return (p.a)
+ 6.69%+ 0.5% + 6.76%+ 1.06% + 6.82%+ 1.92% + 6.79%+ 3.62% + 5.93%+ 9.4% + 5.12%+ 13.82%
ETM Rank
#8 of 9
Invest
SBI Overnight Fund
#3 of 9
Fund Size
₹14,903 Crs
Return (p.a)
+ 6.66%+ 0.5% + 6.72%+ 1.06% + 6.78%+ 1.91% + 6.76%+ 3.61% + 5.9%+ 9.36% + 5.11%+ 13.78%
ETM Rank
#3 of 9
Invest
HDFC Overnight Fund
#9 of 9
Fund Size
₹9,602 Crs
Return (p.a)
+ 6.63%+ 0.49% + 6.72%+ 1.06% + 6.78%+ 1.91% + 6.76%+ 3.6% + 5.89%+ 9.35% + 5.09%+ 13.74%
ETM Rank
#9 of 9
Invest
Bank of India Overnight Fund
Unranked
Fund Size
₹64 Crs
Return (p.a)
+ 6.78%+ 0.5% + 6.86%+ 1.08% + 6.91%+ 1.94% + 6.88%+ 3.67% + 6.03%+ 9.56% N.A.N.A.
ETM Rank
Unranked
Invest
Baroda BNP Paribas Overnight Fund
Unranked
Fund Size
₹634 Crs
Return (p.a)
+ 6.7%+ 0.5% + 6.76%+ 1.06% + 6.83%+ 1.92% + 6.81%+ 3.63% + 5.94%+ 9.43% N.A.N.A.
ETM Rank
Unranked
Invest
Canara Robeco Overnight Fund
Unranked
Fund Size
₹148 Crs
Return (p.a)
+ 6.63%+ 0.49% + 6.7%+ 1.05% + 6.76%+ 1.9% + 6.73%+ 3.59% + 5.89%+ 9.34% N.A.N.A.
ETM Rank
Unranked
Invest
Edelweiss Overnight Fund
Unranked
Fund Size
₹220 Crs
Return (p.a)
+ 6.66%+ 0.5% + 6.73%+ 1.06% + 6.82%+ 1.92% + 6.79%+ 3.62% + 5.9%+ 9.35% N.A.N.A.
ETM Rank
Unranked
Invest
Franklin India Overnight Fund
Unranked
Fund Size
₹385 Crs
Return (p.a)
+ 6.63%+ 0.49% + 6.72%+ 1.06% + 6.78%+ 1.91% + 6.75%+ 3.6% + 5.88%+ 9.33% N.A.N.A.
ETM Rank
Unranked
Invest
HSBC Overnight Fund
Unranked
Fund Size
₹2,212 Crs
Return (p.a)
+ 6.7%+ 0.5% + 6.78%+ 1.07% + 6.84%+ 1.92% + 6.82%+ 3.64% + 5.96%+ 9.45% N.A.N.A.
ETM Rank
Unranked
Invest
Invesco India Overnight Fund
Unranked
Fund Size
₹362 Crs
Return (p.a)
+ 6.75%+ 0.5% + 6.82%+ 1.07% + 6.87%+ 1.93% + 6.83%+ 3.64% + 5.94%+ 9.41% N.A.N.A.
ETM Rank
Unranked
Invest
JM Overnight Fund
Unranked
Fund Size
₹250 Crs
Return (p.a)
+ 6.65%+ 0.5% + 6.72%+ 1.06% + 6.79%+ 1.91% + 6.77%+ 3.61% + 5.91%+ 9.37% N.A.N.A.
ETM Rank
Unranked
Invest
LIC MF Overnight Fund
Unranked
Fund Size
₹1,156 Crs
Return (p.a)
+ 6.75%+ 0.5% + 6.79%+ 1.07% + 6.84%+ 1.92% + 6.81%+ 3.63% + 5.94%+ 9.43% N.A.N.A.
ETM Rank
Unranked
Invest
Mahindra Manulife Overnight Fund
Unranked
Fund Size
₹169 Crs
Return (p.a)
+ 6.7%+ 0.5% + 6.77%+ 1.07% + 6.83%+ 1.92% + 6.8%+ 3.63% + 5.95%+ 9.43% N.A.N.A.
ETM Rank
Unranked
Invest
Mirae Asset Overnight Fund
Unranked
Fund Size
₹1,372 Crs
Return (p.a)
+ 6.72%+ 0.5% + 6.8%+ 1.07% + 6.86%+ 1.93% + 6.83%+ 3.64% + 5.97%+ 9.47% N.A.N.A.
ETM Rank
Unranked
Invest
PGIM India Overnight Fund
Unranked
Fund Size
₹73 Crs
Return (p.a)
+ 6.61%+ 0.49% + 6.73%+ 1.06% + 6.8%+ 1.91% + 6.78%+ 3.62% + 5.93%+ 9.4% N.A.N.A.
ETM Rank
Unranked
Invest
Quant Overnight Fund
Unranked
Fund Size
₹124 Crs
Return (p.a)
+ 7.02%+ 0.52% + 7.15%+ 1.12% + 7.38%+ 2.06% + 7.38%+ 3.93% N.A.N.A. N.A.N.A.
ETM Rank
Unranked
Invest
Sundaram Overnight Fund
Unranked
Fund Size
₹1,314 Crs
Return (p.a)
+ 6.72%+ 0.5% + 6.78%+ 1.07% + 6.84%+ 1.92% + 6.8%+ 3.63% + 5.93%+ 9.4% N.A.N.A.
ETM Rank
Unranked
Invest
TRUSTMF Overnight Fund
Unranked
Fund Size
₹136 Crs
Return (p.a)
+ 6.62%+ 0.49% + 6.69%+ 1.05% + 6.77%+ 1.9% + 6.77%+ 3.61% N.A.N.A. N.A.N.A.
ETM Rank
Unranked
Invest
Tata Overnight Fund
Unranked
Fund Size
₹2,884 Crs
Return (p.a)
+ 6.71%+ 0.5% + 6.79%+ 1.07% + 6.86%+ 1.93% + 6.83%+ 3.64% + 5.95%+ 9.43% N.A.N.A.
ETM Rank
Unranked
Invest
Union Overnight Fund
Unranked
Fund Size
₹160 Crs
Return (p.a)
+ 6.73%+ 0.5% + 6.83%+ 1.07% + 6.86%+ 1.93% + 6.81%+ 3.63% + 5.94%+ 9.42% N.A.N.A.
ETM Rank
Unranked
Invest
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Overnight Funds Returns Calculator
See what your investment would have yielded in
Select fund
Axis Overnight Fund
- Axis Overnight Fund
- DSP Overnight Fund
- Nippon India Overnight Fund
- Aditya Birla Sun Life Overnight Fund
- UTI Overnight Fund
- Kotak Overnight Fund
- Bandhan Overnight Fund
- ICICI Prudential Overnight Fund
- SBI Overnight Fund
- HDFC Overnight Fund
- Bank of India Overnight Fund
- Baroda BNP Paribas Overnight Fund
- Canara Robeco Overnight Fund
- Edelweiss Overnight Fund
- Franklin India Overnight Fund
- HSBC Overnight Fund
- Invesco India Overnight Fund
- JM Overnight Fund
- LIC MF Overnight Fund
- Mahindra Manulife Overnight Fund
- Mirae Asset Overnight Fund
- PGIM India Overnight Fund
- Quant Overnight Fund
- Sundaram Overnight Fund
- TRUSTMF Overnight Fund
- Tata Overnight Fund
- Union Overnight Fund
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Minimum: ₹1,000
for a period of for
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Invested Gains
You would have got
Total investment Invested ₹ 6 Lakh
Profit ₹ 3.33 Lakh
Current value Current value ₹ 9.33 Lakh
This fund has generated an XIRR of 5.16% over the past 5 Years
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- How do Overnight Mutual Funds Work?
- Who Should Invest in Overnight Funds?
- Taxation on Overnight Funds
- How to invest in Overnight Funds?
- Frequently Asked Questions
How do Overnight Mutual Funds Work?
To understand how Overnight Funds work, you need to know where they invest and how they generate returns.
- Where do Overnight Funds Invest? Overnight funds invest in CBLOs, overnight reverse repos, and other debt or money market securities that mature in one day. This is in keeping with SEBI norms, which require them to invest only in assets with overnight maturity. The entire asset holding of an overnight fund can be classified as Cash and Cash Equivalents. The portfolio of an overnight fund is replaced every day with new overnight securities. Overnight schemes are not permitted to invest in deposits or specified risky debt instruments; this rule aims to reduce the risk of default in their bond portfolio.
- Sources of Earnings Overnight funds earn only through interest payments on their debt holdings. There is no scope for earning capital gains as the securities held by the fund mature in one day. In fact, returns of overnight funds reflect overnight lending and borrowing rates. When interest rates are falling and short-term liquidity is abundant, overnight rates in the money market decline. When interest rates are rising and market liquidity is tight, overnight rates increase. Thus, returns of overnight funds are closely linked to rates and conditions in the overnight market for funds.
Who Should Invest in Overnight Funds?
- Investors with a very short investment horizon: Overnight funds are ideal for those with an investment horizon of one week or less, as investors can redeem after holding the units for even one day. This flexibility is a big advantage of overnight funds over liquid funds, which now charge an exit load for redemptions within seven days.
- Medium to Route investments in Equity Funds: Investors who do not want to take any risks until they move to equity can hold funds in an overnight fund. From these funds, investors can use an STP to route investments systematically into an equity fund. This allows them to invest in equity over time while ensuring that the corpus is held safely held in the overnight fund.
Taxation on Overnight Funds
Investors earn dividend income and capital gains from overnight funds. Dividend income is not taxed in the hands of investors. Capital gain is the difference between the purchase price and the selling price of the units. The rate of tax on capital gains depends on the time for which the investor holds the units of the overnight fund.
- Short-term Capital Gains Tax: If an investor stays invested for up to 3 years, capital gains are considered short-term capital gains and taxed at the income tax slab rate applicable to the investor.
- Long-term Capital Gains Tax: If an investor sells the units of an overnight fund after holding it for longer than 3 years, it is considered as long-term capital gain, and the investor gets the benefit of indexation. This means that the purchase price is increased to adjust for inflation (using an index provided by the Government) before calculating the capital gain. In other words, the taxable amount is reduced due to indexation. Long-term capital gains are currently taxed at a lower rate of 20%.
How to invest in Overnight Funds?
It is quite easy to invest in Overnight mutual funds on ET Money. Here are the steps that you have to follow.
- Register online on ET Money app or website
- Head to Mutual Funds sections and choose the Overnight fund you want to invest in.
- Click on invest and choose the amount and mode of investment (SIP or Lumpsum)
- Provide your KYC details (Pan number, Bank details) and complete your investment.
Frequently Asked Questions
Which are the best Overnight Mutual Funds to invest in 2024?
These are top 5 Overnight funds you can invest in 2024
| Fund Name | Fund Category | ETM Rank | Consistency | 5 Year Return (Annualized) |
|---|---|---|---|---|
| Aditya Birla Sun Life Overnight Fund | Debt | # 1 of 9 | 4.75 % p.a. | |
| Nippon India Overnight Fund | Debt | # 2 of 9 | 4.77 % p.a. | |
| SBI Overnight Fund | Debt | # 3 of 9 | 4.72 % p.a. | |
| UTI Overnight Fund | Debt | # 4 of 9 | 4.75 % p.a. | |
| Bandhan Overnight Fund | Debt | # 5 of 9 | 4.74 % p.a. |
How long should I stay invested in Overnight Mutual Funds?
Overnight Debt Mutual Funds are ideal for parking your liquid cash for a few days.
Where do Overnight Mutual Funds invest?
Overnight Funds lend for one business day. The companies that can access this mode of borrowing are regulated and are mostly banks, insurance companies, mutual funds, provident funds, and NBFCs.
Are Overnight Mutual Funds high risk?
Overnight Debt Mutual Funds are the safest Mutual Fund. There are zero risks of borrowers defaulting as they need to give collateral as security when borrowing money.
What kind of returns can i earn from Overnight ?
Overnight Funds have on an average delivered 6.79% p.a. returns in the last 1 year. Their 3 and 5 year annualized returns are 5.13% and 4.75%. p.a.
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