Investors with surplus cash are often on the lookout for investment options to utilise it. However, a major challenge that investors face is to minimise risk, maintain liquidity, and also generate returns. Through an overnight mutual fund, investors can gain exposure to ultra-short-duration debt securities, which offer several benefits. In this blog, we will explore the best overnight mutual funds, how they work, and things that you should consider before investing in them.
An overnight mutual fund is an open-ended debt mutual fund that invests in debt securities that mature the very next day. Once the securities in the portfolio mature, the fund manager reinvests the proceeds to purchase other securities with a similar maturity.
The portfolio of an overnight mutual fund consists of securities that mature on the following day. This helps fund managers significantly reduce risk. Moreover, the portfolio duration shields the funds from interest rate fluctuations.
Overnight mutual funds can help individuals or businesses to park additional cash in a highly liquid debt fund for a short period. However, the lower risk also results in considerably lower returns.
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| Fund Name | Category | Risk | NAV | Expense Ratio | 1Y Returns | 3Y Returns | 5Y Returns | Rating | Fund Size (in Cr) | Exit Load |
|---|---|---|---|---|---|---|---|---|---|---|
Bank of India Overnight Fund | Debt | Low | 1,340.46 | 0.08 | 6.1% | 6.5% | 5.4% | 5 | ₹54 | - |
Axis Overnight Fund | Debt | Low | 1,397.29 | 0.06 | 6.1% | 6.5% | 5.4% | 5 | ₹9,963 | - |
Quant Overnight Fund | Debt | Low | 12.08 | 0.14 | 5.9% | NA | NA | 5 | ₹65 | - |
Mirae Asset Overnight Fund | Debt | Low | 1,353.92 | 0.08 | 6.0% | 6.5% | 5.4% | 4 | ₹1,570 | - |
Tata Overnight Fund | Debt | Low | 1,393.47 | 0.05 | 6.0% | 6.5% | 5.4% | 4 | ₹4,302 | - |
Nippon India Overnight Fund | Debt | Low | 141.81 | 0.08 | 6.0% | 6.5% | 5.4% | 4 | ₹9,364 | - |
Aditya Birla Sun Life Overnight Fund | Debt | Low | 1,427.90 | 0.08 | 6.0% | 6.5% | 5.3% | 4 | ₹9,328 | - |
HSBC Overnight Fund | Debt | Low | 1,381.56 | 0.06 | 6.0% | 6.5% | 5.3% | 4 | ₹4,258 | - |
Kotak Overnight Fund | Debt | Low | 1,408.44 | 0.08 | 6.0% | 6.5% | 5.3% | 4 | ₹8,619 | - |
Union Overnight Fund | Debt | Low | 1,389.72 | 0.07 | 6.0% | 6.4% | 5.3% | 4 | ₹412 | - |
LIC MF Overnight Fund | Debt | Low | 1,368.50 | 0.07 | 6.0% | 6.4% | 5.3% | 4 | ₹856 | - |
Baroda BNP Paribas Overnight Fund | Debt | Low | 1,386.39 | 0.05 | 3.3% | 6.4% | 5.1% | 4 | ₹843 | - |
DSP Overnight Fund | Debt | Low to Moderate | 1,414.06 | 0.07 | 6.0% | 6.5% | 5.3% | 3 | ₹2,792 | - |
Bandhan Overnight Fund | Debt | Low | 1,408.04 | 0.05 | 6.0% | 6.4% | 5.3% | 3 | ₹1,348 | - |
UTI Overnight Fund | Debt | Low | 3,613.75 | 0.06 | 6.0% | 6.4% | 5.3% | 3 | ₹5,069 | - |
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Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Bank of India Overnight Fund has given 6.53% annualized returns in the past three years and 5.44% in the last 5 years. The Bank of India Overnight Fund comes under the Debt category of Bank of India Mutual Funds.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹54Cr |
| 1Y Returns | 6.1% |
Fund Performance: The Axis Overnight Fund has given 6.48% annualized returns in the past three years and 5.37% in the last 5 years. The Axis Overnight Fund comes under the Debt category of Axis Mutual Funds.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹9,963Cr |
| 1Y Returns | 6.1% |
Fund Performance: The Quant Overnight Fund comes under the Debt category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Overnight Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹65Cr |
| 1Y Returns | 5.9% |
Fund Performance: The Mirae Asset Overnight Fund has given 6.46% annualized returns in the past three years and 5.37% in the last 5 years. The Mirae Asset Overnight Fund comes under the Debt category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Overnight Fund via lump sum is ₹5,000 and via SIP is ₹99.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,570Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Tata Overnight Fund has given 6.46% annualized returns in the past three years and 5.36% in the last 5 years. The Tata Overnight Fund comes under the Debt category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata Overnight Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,302Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Nippon India Overnight Fund has given 6.46% annualized returns in the past three years and 5.36% in the last 5 years. The Nippon India Overnight Fund comes under the Debt category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Overnight Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹9,364Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Aditya Birla Sun Life Overnight Fund has given 6.45% annualized returns in the past three years and 5.35% in the last 5 years. The Aditya Birla Sun Life Overnight Fund comes under the Debt category of Aditya Birla Sun Life Mutual Funds.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹9,328Cr |
| 1Y Returns | 6.0% |
Fund Performance: The HSBC Overnight Fund has given 6.45% annualized returns in the past three years and 5.35% in the last 5 years. The HSBC Overnight Fund comes under the Debt category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Overnight Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,258Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Kotak Overnight Fund has given 6.45% annualized returns in the past three years and 5.34% in the last 5 years. The Kotak Overnight Fund comes under the Debt category of Kotak Mahindra Mutual Funds.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹8,619Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Union Overnight Fund has given 6.44% annualized returns in the past three years and 5.34% in the last 5 years. The Union Overnight Fund comes under the Debt category of Union Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Union Overnight Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹412Cr |
| 1Y Returns | 6.0% |
Fund Performance: The LIC MF Overnight Fund has given 6.44% annualized returns in the past three years and 5.35% in the last 5 years. The LIC MF Overnight Fund comes under the Debt category of LIC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in LIC MF Overnight Fund via lump sum is ₹5,000 and via SIP is ₹200.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹856Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Baroda BNP Paribas Overnight Fund has given 6.41% annualized returns in the past three years and 5.13% in the last 5 years. The Baroda BNP Paribas Overnight Fund comes under the Debt category of Baroda Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas Overnight Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹843Cr |
| 1Y Returns | 3.3% |
Fund Performance: The DSP Overnight Fund has given 6.45% annualized returns in the past three years and 5.35% in the last 5 years. The DSP Overnight Fund comes under the Debt category of DSP Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in DSP Overnight Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹2,792Cr |
| 1Y Returns | 6.0% |
Fund Performance: The Bandhan Overnight Fund has given 6.44% annualized returns in the past three years and 5.34% in the last 5 years. The Bandhan Overnight Fund comes under the Debt category of IDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Bandhan Overnight Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹1,348Cr |
| 1Y Returns | 6.0% |
Fund Performance: The UTI Overnight Fund has given 6.44% annualized returns in the past three years and 5.34% in the last 5 years. The UTI Overnight Fund comes under the Debt category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Overnight Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹5,069Cr |
| 1Y Returns | 6.0% |
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