Top Performing Overnight  Funds in 5 Years

The below table shows a list of the top Performing Overnight  Funds in 5 Years based on AUM, NAV, and minimum SIP.

Introduction to Top Performing Overnight  Funds in 5 Years

SBI Overnight Fund  

SBI Overnight Fund is an Overnight mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.  

SBI Overnight Fund is categorized under Overnight Fund with an AUM of ₹16,624.51 Crores, a 5-year CAGR of 4.79%, an exit load of 0%, and an expense ratio of 0.07%. SEBI rates the risk as Low. The asset allocation includes 3.70% in Treasury Bills and 96.30% in Cash & Equivalents. 

ICICI Prudential Overnight Fund  

ICICI Prudential Overnight Fund is an Overnight mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 5 years and 9 months, having been launched on November 14, 2018.  

ICICI Prudential Overnight Fund is categorized under Overnight Fund with an AUM of ₹11,001.21 Crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0%. SEBI rates the risk as Low. The asset allocation includes 6.03% in Treasury Bills and 93.97% in Cash & Equivalents.  

HDFC Overnight Fund  

HDFC Overnight Fund is an Overnight mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.  

HDFC Overnight Fund is categorized under Overnight Fund with an AUM of ₹10,729.65 Crores, a 5-year CAGR of 4.78%, an exit load of 0%, and an expense ratio of 0.1%. SEBI rates the risk as Low. The asset allocation includes 5.73% in Treasury Bills and 94.27% in Cash & Equivalents.  

Nippon India Overnight Fund  

Nippon India Overnight Fund is an Overnight mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 5 years and 8 months, having been launched on December 17, 2018.  

Nippon India Overnight Fund is categorized under Overnight Fund with an AUM of ₹9,114.13 Crores, a 5-year CAGR of 4.84%, an exit load of 0%, and an expense ratio of 0.08%. SEBI rates the risk as Low. The asset allocation includes 5.70% in Treasury Bills and 94.30% in Cash & Equivalents.  

Axis Overnight Fund  

Axis Overnight Fund is an Overnight mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 5 years and 6 months, having been launched on March 7, 2019.  

Axis Overnight Fund is categorized under Overnight Fund with an AUM of ₹8,181.13 Crores, a 5-year CAGR of 4.84%, an exit load of 0%, and an expense ratio of 0.05%. SEBI rates the risk as Low. The asset allocation includes 4.62% in Treasury Bills and 95.38% in Cash & Equivalents.  

Aditya Birla Sun Life Overnight Fund  

Aditya Birla Sun Life Overnight Fund is an Overnight mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 5 years and 10 months, having been launched on October 30, 2018.  

Aditya Birla Sun Life Overnight Fund is categorized under Overnight Fund with an AUM of ₹7,917.84 Crores, a 5-year CAGR of 4.83%, an exit load of 0%, and an expense ratio of 0.08%. SEBI rates the risk as Low. The asset allocation includes 6.05% in Treasury Bills and 93.95% in Cash & Equivalents.  

Kotak Overnight Fund  

Kotak Overnight Fund is an Overnight mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 5 years and 8 months, having been launched on January 10, 2019.  

Kotak Overnight Fund is categorized under Overnight Fund with an AUM of ₹5,778.20 Crores, a 5-year CAGR of 4.81%, an exit load of 0%, and an expense ratio of 0.08%. SEBI rates the risk as Low. The asset allocation includes 4.83% in Treasury Bills and 95.17% in Cash & Equivalents.  

UTI Overnight Fund  

UTI Overnight Fund is an Overnight mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.  

UTI Overnight Fund is categorized under Overnight Fund with an AUM of ₹3,771.29 Crores, a 5-year CAGR of 4.83%, an exit load of 0%, and an expense ratio of 0.05%. SEBI rates the risk as Low. The asset allocation includes 2.42% in Treasury Bills and 97.58% in Cash & Equivalents.  

Tata Overnight Fund  

Tata Overnight Fund is an Overnight mutual fund scheme from Tata Mutual Fund. This fund has been in existence for 5 years and 5 months, having been launched on March 25, 2019.  

Tata Overnight Fund is categorized under Overnight Fund with an AUM of ₹2,762.53 Crores, a 5-year CAGR of 4.83%, an exit load of 0%, and an expense ratio of 0.06%. SEBI rates the risk as Low. The asset allocation includes 4.04% in Treasury Bills and 95.96% in Cash & Equivalents.  

HSBC Overnight Fund  

HSBC Overnight Fund is an Overnight mutual fund scheme from HSBC Mutual Fund. This fund has been in existence for 5 years and 3 months, having been launched on May 21, 2019.  

HSBC Overnight Fund is categorized under Overnight Fund with an AUM of ₹2,104.02 Crores, a 5-year CAGR of 4.85%, an exit load of 0%, and an expense ratio of 0.06%. SEBI rates the risk as Low. The asset allocation includes 5.31% in Treasury Bills and 94.69% in Cash & Equivalents.  

What Are Overnight  Funds?

Overnight Funds are a category of debt mutual funds that invest in extremely short-term securities with a maturity of one day. These funds primarily invest in collateralized borrowing and lending obligations (CBLO), repo markets, and other overnight instruments, aiming to provide investors with high liquidity and very low risk.

Overnight Funds are designed to offer returns slightly higher than savings account interest rates while maintaining a high degree of safety. They are considered one of the safest categories of mutual funds due to their ultra-short investment horizon.

These funds are suitable for investors looking to park their surplus cash for very short periods, typically ranging from a few days to a few weeks. They offer a good alternative to savings accounts for managing short-term liquidity needs.

Features Of Top Performing Overnight  Funds in 5 Years

The main features of top-performing Overnight Funds in 5 years include high liquidity, very low risk, stable returns, and professional management. These funds offer a safe haven for short-term cash parking while aiming to provide returns slightly higher than savings accounts.

• High liquidity: Overnight Funds invest in securities with a one-day maturity, allowing investors to easily redeem their investments on short notice without any exit load.

• Very low risk: Due to their ultra-short investment horizon and high-quality instruments, these funds carry minimal interest rate and credit risk, making them one of the safest investment options.

• Stable returns: While returns are generally modest, they tend to be stable and slightly higher than savings account interest rates, providing a predictable income stream.

• Professional management: Experienced fund managers handle the daily reinvestment of maturing securities, ensuring optimal returns within the fund’s investment mandate.

Best Performing Overnight  Funds in 5 Years

The table below shows the Best Performing Overnight  Funds in 5 Years Based on the lowest to highest expense ratio.

Top Performing Overnight  Funds in 5 Years In India

The table below shows Top Performing Overnight  Funds in 5 Years In India Based on the Highest 3Y CAGR.

Top Performing Overnight  Funds in 5 Years List

The table below shows the Top Performing Overnight  Funds in 5 Years List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Overnight  Funds in 5 Years

The main factors to consider when investing in top-performing Overnight Funds in 5 years include fund size, expense ratio, fund house reputation, consistency of returns, and your investment horizon. These factors can impact the fund’s performance and suitability for your financial goals.

• Fund size: Larger funds may have better negotiating power for overnight rates, potentially leading to slightly higher returns. However, very large funds might face challenges in deploying all assets efficiently.

• Expense ratio: Compare expense ratios across different overnight funds. Lower expenses can contribute to better overall returns, especially given the typically low returns of this category.

• Fund house reputation: Consider the reputation and track record of the fund house in managing debt funds, particularly in the ultra-short-term category.

• Consistency of returns: Look for funds that have consistently provided returns slightly above the prevailing overnight rates over the past five years.

• Investment horizon: Ensure that your investment timeframe aligns with the ultra-short-term nature of overnight funds. These are best suited for very short-term cash parking needs.

How To Invest In Top Performing Overnight  Funds in 5 Years?

To invest in top-performing Overnight Funds in 5 years, start by researching and comparing different funds based on their performance, expense ratios, and fund house reputation. Once you’ve selected a fund that aligns with your short-term liquidity needs, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), although lump sum investments are more common for overnight funds.

Remember that Overnight Funds are designed for very short-term investments, typically ranging from a few days to a few weeks. They are best used for parking surplus cash or managing short-term liquidity needs rather than as long-term investment vehicles.

Advantages Of Investing In Top Performing Overnight  Funds in 5 Years

The main advantages of investing in top-performing Overnight Funds in 5 years include high liquidity, very low risk, potential for better returns than savings accounts, and efficient cash management. These funds offer a safe and flexible option for short-term cash parking.

• High liquidity: Overnight Funds allow investors to redeem their investments on very short notice, usually within one business day, without any exit load.

• Very low risk: These funds carry minimal interest rate and credit risk due to their ultra-short investment horizon and high-quality instruments, making them one of the safest investment options.

• Better returns than savings accounts: While returns are modest, they are generally slightly higher than savings account interest rates, providing a more efficient way to manage short-term cash.

• Efficient cash management: Overnight Funds offer a professional way to manage surplus cash, potentially optimizing returns on idle money for very short periods.

Risks Of Investing In Top Performing Overnight  Funds in 5 Years

The main risks of investing in top-performing Overnight Funds in 5 years include reinvestment risk, the potential for underperformance compared to other debt categories, and the impact of expenses on returns. While generally very low-risk, these funds are not entirely risk-free.

• Reinvestment risk: As securities mature daily, there’s a risk that proceeds may be reinvested at lower rates if overnight rates decline, potentially impacting overall returns.

• Underperformance risk: Overnight Funds may underperform other debt categories, especially in rising interest rate scenarios, due to their ultra-short investment horizon.

• Impact of expenses: Given the low returns of Overnight Funds, even small differences in expense ratios can significantly impact net returns to investors.

• Opportunity cost: While providing safety and liquidity, these funds may not be suitable for long-term wealth creation due to their low returns compared to other investment options.

Importance of Overnight Mutual Funds

The main importance of Overnight Mutual Funds lies in their ability to provide high liquidity, very low risk, and efficient cash management. These funds play a crucial role in managing short-term surplus cash and meeting immediate liquidity needs for various investor profiles.

• Liquidity management: Overnight Funds offer an efficient way to manage short-term liquidity needs, providing easy access to funds while earning returns slightly higher than savings accounts.

• Risk mitigation: For conservative investors or those looking to park funds temporarily, these funds offer one of the safest investment options in the mutual fund universe.

• Cash flow optimization: Businesses and individuals can use Overnight Funds to optimize returns on surplus cash that may be needed in the very near future.

• Alternative to savings accounts: These funds provide a potential alternative to traditional savings accounts for managing short-term cash, potentially offering slightly better returns with similar liquidity.

How Long to Stay Invested in Overnight Mutual Funds?

Overnight Mutual Funds are designed for very short-term investments, typically ranging from a few days to a few weeks. They are best suited for parking surplus cash or managing immediate liquidity needs rather than as long-term investment vehicles. The ideal investment horizon is usually less than a month.

However, some investors may choose to keep a portion of their emergency fund in Overnight Funds for slightly better returns than savings accounts while maintaining high liquidity. In such cases, the investment period could be longer, but it’s important to remember that these funds are not meant for long-term wealth creation.

Tax Implications of Investing in Overnight Mutual Funds

Overnight Mutual Funds are taxed as debt mutual funds in India. For holding periods up to 3 years, gains are considered short-term capital gains and taxed at the investor’s income tax slab rate. For holding periods over 3 years, gains are treated as long-term capital gains.

Given the ultra-short-term nature of these funds, most investors will fall under the short-term capital gains tax category. It’s important to note that the taxation of debt funds is generally less favorable than equity funds for short-term investments, which should be considered when comparing returns with other investment options.

Future of Overnight Mutual Funds

The future of Overnight Mutual Funds in India looks stable, driven by the ongoing need for efficient short-term cash management solutions. As financial markets evolve and investors become more aware of various investment options, these funds are likely to remain an important tool for liquidity management.

However, their growth may be influenced by factors such as changes in overnight interest rates, regulatory developments, and innovations in short-term investment products. The increasing digitalization of financial services may also lead to more efficient and accessible Overnight Fund offerings in the future.

Top Performing Overnight  Funds in 5 Years – FAQs   

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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.