Overnight Mutual Funds
Park money for as short as one day with near-zero credit risk.
6.42%
12
Very Low
1 day – 1 week
Top Overnight Mutual Funds Sorted by Returns
HDFC Overnight Fund
HDFC MF
ICICI Prudential Overnight Fund
ICICI Prudential MF
SBI Overnight Fund
SBI MF
* Returns are annualized and based on historical data. Past performance does not guarantee future results. Min. SIP: ₹500.
What is a Overnight Fund?
Overnight funds invest in debt securities maturing the very next business day. They carry virtually zero interest rate risk and minimal credit risk, making them the safest category of mutual funds.
Key Advantages
- Near-zero credit and interest rate risk
- Instant liquidity — ideal for emergency cash
- Marginally better returns than savings accounts
- No lock-in period
How It Works
The fund manager buys CBLO (collateralized borrowing and lending obligations), reverse repos, and other overnight instruments. Every morning the portfolio matures and is reinvested.
Who Should Invest?
- Investors parking surplus cash for a few days
- Corporate treasuries managing daily liquidity
- Risk-averse investors seeking capital preservation
Taxation
Gains taxed at your income tax slab rate regardless of holding period.
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