Mutual Funds
Overnight funds vs liquid funds
How portfolio maturity, risk, liquidity and use cases differ between these debt-fund categories.
Overnight funds invest in one-day maturity securities, while liquid funds may hold short-term debt and money-market instruments with longer residual maturities within applicable limits.
Because their portfolios differ, the categories can have different interest-rate, credit and liquidity characteristics. Neither category offers assured returns or capital protection.
Compare the scheme mandate, portfolio quality, expense ratio, exit load, taxation and the period for which the money may remain invested. Read the scheme documents before investing.
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.