Mutual Funds
Overnight funds: purpose, structure and risks
A neutral introduction to debt funds that invest in securities with one-day maturity.
Overnight funds are debt mutual fund schemes that invest in securities maturing in one business day. Their portfolios are renewed frequently as holdings mature.
The short maturity generally limits interest-rate sensitivity, but it does not make the scheme risk-free or guarantee returns. Expenses, market conditions and operational factors still affect outcomes.
Review the scheme objective, portfolio, expense ratio, taxation and intended holding period before investing. Mutual fund investments are subject to market risks.
This article provides general educational information, not individual investment, tax or legal advice. Eligibility, risks and product terms apply. Product suitability depends on individual circumstances.