The table below shows Top Performing Overnight Funds in 1 Year based on AUM, NAV, and Minimum SIP.
| Name | AUM Cr. | NAV | Minimum SIP Rs. |
| Aditya Birla SL Overnight Fund | 7,917.84 | 1,328.79 | 100.00 |
| Kotak Overnight Fund | 5,778.20 | 1,310.54 | 100.00 |
| UTI Overnight Fund | 3,771.29 | 3,362.85 | 500.00 |
| Tata Overnight Fund | 2,762.53 | 1,296.22 | 150.00 |
| HSBC Overnight Fund | 2,104.02 | 1,285.58 | 500.00 |
| Bandhan Overnight Fund | 1,750.01 | 1,310.26 | 100.00 |
| DSP Overnight Fund | 1,714.31 | 1,315.98 | 100.00 |
| Sundaram Overnight Fund | 1,040.15 | 1,305.32 | 100.00 |
| Baroda BNP Paribas Overnight Fund | 649.13 | 1,290.22 | 500.00 |
| Mirae Asset Overnight Fund | 581.62 | 1,259.81 | 100.00 |
Introduction to Top Performing Overnight Funds in 1 Year
Aditya Birla SL Overnight Fund
Aditya Birla SL Overnight Fund is an Overnight Fund with an AUM of ₹7,917.84 Crores, a 5-year CAGR of 4.83%, and an expense ratio of 0.08%, with a 0% exit load.
Aditya Birla Sun Life Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. The fund’s asset allocation consists of 6% in Debt and 94% in Cash, with no Equity investment, reflecting a conservative strategy focused on maintaining high liquidity and minimal fixed-income exposure.
Kotak Overnight Fund
Kotak Overnight Fund is an Overnight Fund with an AUM of ₹5,778.20 Crores, a 5-year CAGR of 4.81%, and an expense ratio of 0.08%, with a 0% exit load.
Kotak Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994. This fund allocates 4.8% to Debt and 95.2% to Cash, with no Equity holdings, indicating a strong emphasis on liquidity and a cautious approach to fixed-income investments.
UTI Overnight Fund
UTI Overnight Fund is an Overnight Fund with an AUM of ₹3,771.29 Crores, a 5-year CAGR of 4.83%, and an expense ratio of 0.05%, with a 0% exit load.
UTI Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by UTI Mutual Fund. This scheme was made available to investors on 14 Nov 2002. The asset allocation for this fund features 2.7% in Debt and 97.3% in Cash, with no investment in Equity, highlighting a conservative strategy prioritizing liquidity and minimal fixed-income exposure.
Tata Overnight Fund
Tata Overnight Fund is an Overnight Fund with an AUM of ₹2,762.53 Crores, a 5-year CAGR of 4.83%, and an expense ratio of 0.06%, with a 0% exit load.
Tata Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by Tata Mutual Fund. This scheme was made available to investors on 30 Jun 1995. The fund’s asset allocation consists of 4% in Debt and 96% in Cash, with no Equity investment, reflecting a highly conservative strategy focused on liquidity and minimal fixed-income exposure.
HSBC Overnight Fund
HSBC Overnight Fund is an Overnight Fund with an AUM of ₹2,104.02 Crores, a 5-year CAGR of 4.85%, and an expense ratio of 0.06%, with a 0% exit load.
HSBC Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by HSBC Mutual Fund. This scheme was made available to investors on 27 May 2002. This fund allocates 5.3% to Debt and 94.7% to Cash, with no Equity holdings, indicating a strong emphasis on liquidity and a cautious approach to fixed-income investments.
Bandhan Overnight Fund
Bandhan Overnight Fund is an Overnight Fund with an AUM of ₹1,750.01 Crores, a 5-year CAGR of 4.81%, and an expense ratio of 0.05%, with a 0% exit load.
Bandhan Overnight Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 20 Dec 1999. The asset allocation for this fund features 5.5% in Debt and 94.5% in Cash, with no investment in Equity, highlighting a conservative strategy prioritizing liquidity with limited fixed-income exposure.
DSP Overnight Fund
DSP Overnight Fund is an Overnight Fund with an AUM of ₹1,714.31 Crores, a 5-year CAGR of 4.86%, and an expense ratio of 0.06%, with a 0% exit load.
DSP Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by DSP Mutual Fund. This scheme was made available to investors on 16 Dec 1996. The fund’s asset allocation comprises 5.4% in Debt and 94.6% in Cash, with no Equity investment, indicating a conservative strategy focused on high liquidity and limited fixed-income exposure.
Sundaram Overnight Fund
Sundaram Overnight Fund is an Overnight Fund with an AUM of ₹1,040.15 Crores, a 5-year CAGR of 4.82%, and an expense ratio of 0.07%, with a 0% exit load.
Sundaram Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by Sundaram Mutual Fund. This scheme was made available to investors on 26 Feb 1996. This fund allocates 6% to Debt and 94% to Cash, with no Equity holdings, reflecting a strong emphasis on liquidity and a cautious approach to fixed-income investments.
Baroda BNP Paribas Overnight Fund
Baroda BNP Paribas Overnight Fund is an Overnight Fund with an AUM of ₹649.13 Crores, a 5-year CAGR of 4.84%, and an expense ratio of 0.09%, with a 0% exit load.
Baroda BNP Paribas Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by Baroda BNP Paribas Mutual Fund. This scheme was made available to investors on 15 Apr 2004. The fund is entirely allocated to Debt at 100%, with 94.5% in Cash, and no Equity investment, emphasizing a strategy focused on fixed-income securities and liquidity management.
Mirae Asset Overnight Fund
Mirae Asset Overnight Fund is an Overnight Fund with an AUM of ₹581.62 Crores, and an expense ratio of 0.07%, with a 0% exit load.
Mirae Asset Overnight Fund Direct Growth is a Debt Mutual Fund Scheme launched by Mirae Asset Mutual Fund. This scheme was made available to investors on 30 Nov 2007. The asset allocation for this fund includes 4.9% in Debt and 95.1% in Cash, with no Equity investment, highlighting a conservative strategy prioritizing liquidity with minimal fixed-income exposure.
What Are Overnight Funds?
Overnight Funds invest in securities with a maturity of just one day, offering low-risk and high liquidity. These funds are ideal for investors looking for short-term parking of funds with minimal risk and slightly better returns than savings accounts.
Features Of Top Performing Overnight Funds in 1 Year
The main features of Top Performing Overnight Funds in 1 Year include high liquidity, low interest rate sensitivity, minimal credit risk, and consistent returns. These funds are preferred for their stability and safety, making them attractive to conservative investors seeking short-term investments.
- High Liquidity
Overnight funds offer immediate access to funds, typically within 24 hours. This makes them highly liquid, and ideal for investors who need quick access to cash without the risk of market volatility.
- Low Interest Rate Sensitivity
Due to their short duration, overnight funds have minimal sensitivity to interest rate changes. This reduces the risk of capital loss, offering a stable return, even in fluctuating interest rate environments.
- Minimal Credit Risk
These funds invest in highly-rated instruments with very short maturities, significantly reducing the credit risk. The probability of default is extremely low, making these funds a safe parking option for short-term surplus cash.
- Consistent Returns
Overnight funds provide consistent, albeit modest, returns that are generally higher than traditional savings accounts. They are a reliable option for risk-averse investors who prefer stable income over high-risk, high-return investments.
Best Performing Overnight Funds in 1 Year
The table below shows Best Performing Overnight Funds in 1 Year based on Expense Ratio and Minimum SIP.
| Name | Expense Ratio | Minimum SIP Rs. |
| Axis Overnight Fund | 0.05 | 100.00 |
| UTI Overnight Fund | 0.05 | 500.00 |
| Bandhan Overnight Fund | 0.05 | 100.00 |
| Tata Overnight Fund | 0.06 | 150.00 |
| HSBC Overnight Fund | 0.06 | 500.00 |
| DSP Overnight Fund | 0.06 | 100.00 |
| Invesco India Overnight Fund | 0.06 | 100.00 |
| Sundaram Overnight Fund | 0.07 | 100.00 |
| Mirae Asset Overnight Fund | 0.07 | 100.00 |
| LIC MF Overnight Fund | 0.07 | 100.00 |
Top Performing Overnight Funds in 1 Year In India
The table below shows Top Performing Overnight Funds in 1 Year In India based on CAGR 3Y and Minimum SIP.
| Name | CAGR 3Y % | Minimum SIP Rs. |
| Bank of India Overnight Fund | 5.73 | 100.00 |
| Mirae Asset Overnight Fund | 5.67 | 100.00 |
| Axis Overnight Fund | 5.66 | 100.00 |
| HSBC Overnight Fund | 5.66 | 500.00 |
| Nippon India Overnight Fund | 5.66 | 5,000.00 |
| DSP Overnight Fund | 5.65 | 100.00 |
| Mahindra Manulife Overnight Fund | 5.65 | 100.00 |
| LIC MF Overnight Fund | 5.64 | 100.00 |
| Aditya Birla SL Overnight Fund | 5.64 | 100.00 |
| Kotak Overnight Fund | 5.64 | 100.00 |
Top Performing Overnight Funds in 1 Year List
The table below shows Top Performing Overnight Funds in 1 Year List based on Exit Load and AMC.
| Name | AMC | Exit Load % |
| DSP Overnight Fund | DSP Investment Managers Private Limited | 0.00 |
| HSBC Overnight Fund | HSBC Global Asset Management (India) Private Limited | 0.00 |
| Axis Overnight Fund | Axis Asset Management Company Ltd. | 0.00 |
| Nippon India Overnight Fund | Nippon Life India Asset Management Limited | 0.00 |
| Baroda BNP Paribas Overnight Fund | Baroda BNP Paribas Asset Management India Pvt. Ltd. | 0.00 |
| LIC MF Overnight Fund | LIC Mutual Fund Asset Management Limited | 0.00 |
| Tata Overnight Fund | Tata Asset Management Private Limited | 0.00 |
| UTI Overnight Fund | UTI Asset Management Company Private Limited | 0.00 |
| Mahindra Manulife Overnight Fund | Mahindra Manulife Investment Management Private Limited | 0.00 |
| Aditya Birla SL Overnight Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
Factors To Consider When Investing In Top Performing Overnight Funds in 1 Year
The main factors to consider when Investing In Top Performing Overnight Funds in 1 Year include the fund’s expense ratio, credit quality of securities, past performance, and liquidity needs. These aspects help determine if an overnight fund aligns with your investment goals and risk tolerance.
- Expense Ratio
A lower expense ratio ensures more of your returns are retained. It’s important to choose overnight funds with competitive expense ratios, as high fees can erode the modest returns these funds typically provide.
- Credit Quality
Overnight funds invest in short-term debt instruments. Prioritize funds that maintain high credit quality by investing in securities with top ratings to minimize risk while ensuring stable returns.
- Past Performance
Although past performance doesn’t guarantee future returns, it can provide insights into a fund’s consistency. Analyze how the fund performed over the last year, especially during market volatility, to gauge its stability.
- Liquidity Needs
Overnight funds are highly liquid. Ensure that your investment matches your liquidity requirements, as these funds are ideal for short-term parking of funds, offering quick redemption within 24 hours.
How To Invest In Top Performing Overnight Funds in 1 Year?
To invest, open a mutual fund account with Alice Blue research top-performing overnight funds, and select based on factors like expense ratio and credit quality. Complete the investment online or via the platform’s app for easy access and monitoring.
Advantages Of Investing In Top Performing Overnight Funds in 1 Year
The main advantages of Investing In Top Performing Overnight Funds in 1 Year include high liquidity, minimal risk, ease of entry and exit, and stable returns. These features make overnight funds an ideal short-term parking option for risk-averse investors seeking security and flexibility.
- High Liquidity
Overnight funds allow quick access to funds, typically redeemable within 24 hours. This makes them an excellent choice for investors needing immediate liquidity without compromising on safety or returns.
- Minimal Risk
Overnight funds invest in highly rated, short-duration securities, reducing both credit and interest rate risks. This makes them an attractive option for investors looking for a safe, low-risk investment.
- Ease of Entry and Exit
Investors can easily enter and exit overnight funds without worrying about exit loads or penalties. This flexibility suits investors who need short-term investment options without long-term commitments.
- Stable Returns
While the returns are modest, overnight funds offer consistency. Investors benefit from slightly higher returns than savings accounts without taking on the volatility of the market.
Risks Of Investing In Top Performing Overnight Funds in 1 Year
The main risks of Investing In Top Performing Overnight Funds in 1 Year include lower returns compared to other investment options, reinvestment risk, and limited growth potential. While these funds are safe, they may not meet the needs of investors seeking higher returns or long-term growth.
- Lower Returns
Overnight funds provide safety but at the cost of lower returns compared to equity or long-term debt funds. Investors seeking higher returns might find these funds less appealing over a long period.
- Reinvestment Risk
Since overnight funds invest in short-term securities, there’s a risk that upon maturity, funds may be reinvested at lower interest rates, potentially reducing overall returns if interest rates decline.
- Limited Growth Potential
These funds are not designed for growth. Investors looking for capital appreciation over time might need to explore other asset classes, as overnight funds prioritize safety over substantial returns.
- Opportunity Cost
By investing in low-risk overnight funds, investors might miss out on better opportunities in higher-return investments. This opportunity cost is something to consider for those with a higher risk tolerance.
Importance of Overnight Funds
Overnight funds play a vital role for investors seeking a safe place to park surplus funds for a short duration. With their high liquidity and minimal risk, these funds are ideal for maintaining flexibility while earning better returns than a standard savings account.
For corporate investors, overnight funds provide a convenient option to manage idle cash while retaining immediate access. Retail investors also benefit from these funds by safely parking money temporarily, allowing flexibility to switch to other investments when the time is right.
How Long to Stay Invested in Overnight Mutual Funds?
Overnight funds are designed for short-term investments, typically for a few days to a couple of weeks. Investors looking for safe, temporary parking of funds can exit these investments when their liquidity needs change without any penalties.
However, investors may stay invested longer during periods of uncertainty, as overnight funds offer stability and liquidity without the risk of market fluctuations. Once market conditions stabilize, they can move their funds to other asset classes as needed.
Tax Implications of Investing in Overnight Funds
Overnight funds are taxed as debt funds. If held for less than three years, gains are taxed as short-term capital gains, according to your applicable tax slab. Therefore, short-term investors should consider the tax implications when calculating net returns.
For investments held for more than three years, gains are taxed at 20% with indexation benefits. This helps offset inflation, making long-term investments more tax-efficient, though overnight funds are generally not used for long-term investments.
Future of Overnight Funds
The future of overnight funds remains promising, especially as more investors seek low-risk, liquid options for short-term investments. As financial markets evolve, overnight funds may attract more retail and institutional investors looking for safe, quick-access investment vehicles.
With growing volatility in other asset classes, the demand for safe, liquid funds like overnight funds will likely increase. Their simplicity, ease of access, and reliability position them as an essential tool in any diversified portfolio.
Top Performing Overnight Funds in 1 Year FAQs
Overnight funds invest in securities with a maturity of just one day, offering high liquidity and minimal risk. These funds are ideal for short-term parking of funds with stable returns.
Top Performing Overnight Funds in 1 Year #1: Aditya Birla SL Overnight Fund
Top Performing Overnight Funds in 1 Year #2: Kotak Overnight Fund
Top Performing Overnight Funds in 1 Year #3: UTI Overnight Fund
Top Performing Overnight Funds in 1 Year #4: Tata Overnight Fund
Top Performing Overnight Funds in 1 Year #5: HSBC Overnight Fund
Top Performing Overnight Funds in 1 Year based on AUM.
The best-performing Overnight Funds in 1 Year based on expense ratio include Axis Overnight Fund, UTI Overnight Fund, Bandhan Overnight Fund, Tata Overnight Fund, and HSBC Overnight Fund.
Yes, overnight funds are ideal for investors seeking low-risk, short-term investments. They provide better returns than savings accounts and offer high liquidity for quick access to funds.
Overnight funds typically offer returns between 3% to 5% annually, depending on market conditions. While the returns are modest, they are stable and provide higher liquidity compared to savings accounts.
Overnight funds invest in securities with a one-day maturity. The fund’s portfolio is refreshed daily, ensuring minimal interest rate risk and quick redemption, making them highly liquid investments.
To Invest In Best Performing Overnight Funds in 1 Year, Open a mutual fund account through Alice Blue, research the top-performing overnight funds, and invest based on factors like expense ratio, credit quality, and liquidity for your short-term goals.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
