Overnight Funds
Last Updated on 12 May 2026
3 Year Average Returns
5.91%
Funds on Anand Rathi
152
Overnight Funds to Invest in 2026
| Fund Name | |||
|---|---|---|---|
| Aditya Birla SL Overnight Fund - Reg (IDCW-W)RI | 11.48% | 8.88% | 7.08% |
| Bandhan Overnight Fund - Regular (IDCW-D) RI | 6.61% | 7.55% | 6.83% |
| ITI Overnight Fund - Regular (IDCW-W) RI | 5.57% | 5.92% | 6.73% |
| Mahindra Manulife Overnight Fund - Reg (IDCW-D) RI | 5.29% | 6.05% | 6.32% |
| DSP Overnight Fund - Regular (IDCW-W) | 4.84% | 6.92% | 6.31% |
| Sundaram Overnight Fund - Regular (IDCW-M) RI | 5.26% | 6.17% | 5.93% |
| Franklin India Overnight Fund - Regular (IDCW-W) | 7.19% | 6.78% | 5.84% |
| PGIM India Overnight Fund - Regular (IDCW-W) | 5.03% | 6.47% | 5.70% |
| ICICI Pru Overnight Fund (IDCW-W) | 5.28% | 6.19% | 5.65% |
| Bank of India Overnight Fund - Regular (G) | 5.45% | 6.31% | 5.62% |
| DSP Overnight Fund - Regular (IDCW-D) RI | 5.26% | 5.80% | 5.57% |
| AXIS Overnight Fund - Regular (G) | 5.38% | 6.23% | 5.54% |
| AXIS Overnight Fund - Regular (IDCW-M) | 5.38% | 6.23% | 5.54% |
| UTI-Overnight Fund (IDCW-Periodic) | 5.34% | 6.20% | 5.51% |
| UTI-Overnight Fund (G) | 5.34% | 6.20% | 5.51% |
Calculate Your Mutual Fund Returns
Returns Estimator
Estimation is based on the past performance
Enter Amount
₹
Select Duration
Yrs
1 Yr
30 Yrs
Expected Rate of Return
12%
8%
30%
The value of your investment after 5 Years will be
₹4,12,432
Invested Amount
₹3,00,000
Est. Returns
₹1,12,432
Explore Debt Funds by Types
Explore Mutual Funds by Types
What Are Overnight Debt Funds?
Overnight mutual funds can be classified as a type of debt fund where money is invested specifically in securities with a one-day maturity. In short, each investment made by fund managers has a 1-day expiry.
Once it matures, they may reinvest in some other security with the same maturity.
Due to its very short time frame, the mutual fund portfolio is not openly exposed to the interest rate risk or default risk that other debt funds are. These funds aim to provide investors with a liquid and safe place to park extra money for brief periods.
Benefits of Investing in Overnight Mutual Funds
Investing in overnight mutual funds can be a smart way to invest your money without locking it away for long periods. Here's why you can consider investing in overnight debt funds:
Relatively unaffected by market volatility
Since overnight funds invest in very short-term instruments, they are less impacted by market ups and downs.
One-day maturity and liquidity factor
With the shortest maturity available, you can access your money quickly, usually the next business day, making it easy to manage your cash needs.
Subject to minimum risks
Short investment duration reduces exposure to interest rate and credit risks, keeping your investment safer.
Better utilization of idle funds
Instead of leaving money idle in a savings account, overnight funds help you earn a little extra without locking it away.
How Do Overnight Debt Funds Work?
As the name suggests, overnight debt funds prefer debt securities with a maturity of one day. These instruments are often used: Tri-Party Repos (TREPS), Collateralized Borrowing and Lending Obligations (CBLOs), Reverse Repos, and other eligible assets with a one-day maturity.
Once the instrument matures (or expires), the fund manager will search for securities of the same maturity or fresh securities and buy them at a new price. This cycle runs every day as the fund management continues buying fresh overnight securities. Thus, the entire Asset Under Management (AUM) every morning is in cash.
This approach ensures daily portfolio refreshment of the fund, maintaining high liquidity and minimizing interest rate risk.
Who Should Invest in Overnight Funds?
Overnight funds are suitable for:
- Investors who are risk-averse and want to park their money overnight.
- Those individuals seeking greater liquidity for easy access to funds.
- Institutional investors (banks, insurers, corporates) parking surplus funds for potential yields.
- Individuals needing a temporary parking spot for emergencies.
- Investors using them as feeder funds for equity investments via systematic transfer plans (STP).
How to Invest in Overnight Mutual Funds at Anand Rathi
Planning to invest in Overnight funds? Anand Rathi offers a secure and seamless platform for investing in overnight bond funds – Quick, Secure, and 100% digital. Here's how you can invest in 5 easy steps:
Create or Log In to Your Account
Start by signing up or logging in to your existing Anand Rathi account. Already a user? Simply log in to your account.
Complete Your KYC
Verify your identity (via KYC) to comply with regulatory requirements. Not long procedures, only a few clicks.
Select Overnight Fund
Choose from overnight mutual funds that suit your investment needs.
Enter Investment Amount
Decide how much you want to invest and confirm the payment (SIP or lump sum mode).
Start Investing
Submit your investment, and your funds will appear in your dashboard from the very next business day.
Factors to Consider Before Investing in Overnight Bond Mutual Funds
Before investing in overnight funds, consider the following factors:
Investment Objective
Before investing, ensure that overnight funds align with your short-term goals. For instance, if you need to park money safely for a few days or weeks, these funds are safe.
Risk Appetite
Overnight funds are low-risk, but like any investment, they're not completely risk-free.
Expense Ratio
On a general note, do check the fund's management fees, as higher costs can slightly reduce your overall portfolio value.
Fund Performance
Review and evaluate the fund's track record to understand its consistency, keeping in mind that past performance doesn't guarantee future results.
Track Record & Experience of Fund House
Choose a regulated and trusted asset management company to ensure your investment in the overnight debt fund is safe and professionally managed.
Tax Implications
In addition to the above points, understanding how gains are taxed, particularly short-term capital gains, is crucial for effective tax planning.
Taxation Rules on Overnight Funds
Any person (or investor) who has invested or will invest in overnight funds falls into two categories:
Before April 1, 2023, but sold before July 23, 2024: LTCG (20% with indexation benefit), STCG (Slab rate).
Before April 1, 2023, but sold after July 23, 2024: LTCG (12.5% - without indexation), STCG (slab rate).
On or after April 1, 2023: Irrespective of holding period - Taxed at the individual's slab rate.
Open NFOs
Mutual Funds Calculators
The information provided on this page is for informational purposes only and should not be construed as investment advice, recommendation, or solicitation to buy or sell any securities or financial pr...
Frequently Asked Questions
Download the AR Invest App
