Overnight Mutual Funds
Overnight funds are the most recent addition to India’s available mutual fund (MF) categories. These open-ended funds invest in debt securities, Reverse Repos, and Collateralized Borrowing and Lending Obligation (CBLOs) with one-day (overnight) maturity. View More
Best Overnight Mutual Funds
Overnight Mutual Funds List
| Fund Name | Fund Size(Cr.) | 3Y | 5Y | |
|---|---|---|---|---|
Bank of India Overnight Fund - Direct Growth
|
60 | 5.96% | - | |
AXIS Overnight Fund - Direct Growth
|
8,135 | 5.90% | 4.90% | |
Mirae Asset Overnight Fund - Direct Growth
|
636 | 5.90% | 4.94% | |
Nippon India Overnight Fund - Direct Growth
|
8,050 | 5.89% | 4.90% | |
HSBC Overnight Fund - Direct Growth
|
2,214 | 5.89% | 4.91% | |
DSP Overnight Fund - Direct Growth
|
2,146 | 5.88% | 4.92% | |
Kotak Overnight Fund - Direct Growth
|
6,038 | 5.88% | 4.87% | |
Mahindra Manulife Overnight Fund - Dir Growth
|
158 | 5.87% | 4.89% | |
Aditya Birla SL Overnight Fund - Dir Growth
|
7,876 | 5.87% | 4.88% | |
Tata Overnight Fund - Direct Growth
|
4,645 | 5.87% | 4.88% |
| Fund Name | 1Y | Rating | Fund Size |
|---|---|---|---|
Bank of India Overnight Fund - Direct Growth
|
6.84% Fund Size - 60 |
||
AXIS Overnight Fund - Direct Growth
|
6.81% Fund Size - 8,135 |
||
Mirae Asset Overnight Fund - Direct Growth
|
6.80% Fund Size - 636 |
||
Nippon India Overnight Fund - Direct Growth
|
6.78% Fund Size - 8,050 |
||
HSBC Overnight Fund - Direct Growth
|
6.77% Fund Size - 2,214 |
||
DSP Overnight Fund - Direct Growth
|
6.78% Fund Size - 2,146 |
||
Kotak Overnight Fund - Direct Growth
|
6.78% Fund Size - 6,038 |
||
Mahindra Manulife Overnight Fund - Dir Growth
|
6.76% Fund Size - 158 |
||
Aditya Birla SL Overnight Fund - Dir Growth
|
6.76% Fund Size - 7,876 |
||
Tata Overnight Fund - Direct Growth
|
6.78% Fund Size - 4,645 |
Who Should Invest in Overnight Mutual Funds?
Features of Overnight Mutual Funds
Factors to consider while investing in Overnight Funds
Taxability of Overnight Funds
Risks Involved With Overnight Funds
Advantages of Overnight Mutual Funds
Popular Overnight Mutual Funds
- Bank of India Overnight Fund - Direct Growth
- -
- ₹ 600
- 5.96%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 60
- 3Y Return
- 5.96%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 60
- 3Y Return
- 5.96%
- AXIS Overnight Fund - Direct Growth
- ₹ 1000
- ₹ 8,1350
- 5.90%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 8,135
- 3Y Return
- 5.90%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 8,135
- 3Y Return
- 5.90%
- Mirae Asset Overnight Fund - Direct Growth
- ₹ 99
- ₹ 6360
- 5.90%
- Min SIP Investment Amt
- ₹ ₹ 99
- AUM (Cr.)
- ₹ 636
- 3Y Return
- 5.90%
- Min SIP Investment Amt
- ₹ ₹ 99
- AUM (Cr.)
- ₹ 636
- 3Y Return
- 5.90%
- Nippon India Overnight Fund - Direct Growth
- ₹ 100
- ₹ 8,0500
- 5.89%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 8,050
- 3Y Return
- 5.89%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 8,050
- 3Y Return
- 5.89%
- HSBC Overnight Fund - Direct Growth
- ₹ 500
- ₹ 2,2140
- 5.89%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 2,214
- 3Y Return
- 5.89%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 2,214
- 3Y Return
- 5.89%
- DSP Overnight Fund - Direct Growth
- ₹ 100
- ₹ 2,1460
- 5.88%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 2,146
- 3Y Return
- 5.88%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 2,146
- 3Y Return
- 5.88%
- Kotak Overnight Fund - Direct Growth
- -
- ₹ 6,0380
- 5.88%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 6,038
- 3Y Return
- 5.88%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 6,038
- 3Y Return
- 5.88%
- Mahindra Manulife Overnight Fund - Dir Growth
- -
- ₹ 1580
- 5.87%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 158
- 3Y Return
- 5.87%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 158
- 3Y Return
- 5.87%
- Aditya Birla SL Overnight Fund - Dir Growth
- -
- ₹ 7,8760
- 5.87%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 7,876
- 3Y Return
- 5.87%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 7,876
- 3Y Return
- 5.87%
- Tata Overnight Fund - Direct Growth
- ₹ 1000
- ₹ 4,6450
- 5.87%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 4,645
- 3Y Return
- 5.87%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 4,645
- 3Y Return
- 5.87%
FAQs
Yes, the returns on overnight funds are taxable. However, they are more tax efficient as compared to other investment options. The tax rates depend on the period for which you hold the funds. If you hold the funds for less than three years, you must pay a Short-Term Capital Gains Tax on the returns. The Short-Term Capital Gains Tax rate will be decided based on the income slab of the investor.
However, if you hold the fund for more than three years, you will have to pay a Long-Term Capital Gains Tax at a flat rate of 20%.
There are several benefits of investing in overnight funds. The overnight funds are held for a shorter period. Hence, they are secure, and you do not lose a lot of capital in case of interest fluctuations. Also, if you have a lot of idle funds and want to earn some returns on them, you can invest them in an overnight fund.
Overnight funds are debt funds that get their returns from debt securities. These funds have an overnight maturity. These open-ended funds have a residual maturity of day. The fund is quite flexible and is a liquid form of different debts. If you are interested in investing in overnight funds, you need to place a request for the purchase and the redemption of the funds during regular business hours.
These funds are ideal for risk-averse investors looking for short-term investments and short-term gains. If you want a weekly investment option, you can invest in short-term funds like overnight funds. You can even hold these securities for a day. These funds are ideal for investors who want flexibility with their investments.
Any interest changes will impact the overnight funds directly. For instance, if you make the investment at 1 AM today and the RBI reduces the interest rate at 4 PM on the same day, the returns on the overnight fund will decrease substantially. However, your returns will increase considerably if the RBI increases the interest rate within the same day.
Several overnight mutual funds are performing well. Some of the best-performing overnight mutual funds of the year are UTI Overnight Fund, SBI Overnight Fund, and HDFC Overnight Fund.
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