Overnight Mutual Funds in India

Overnight funds are the most conservative debt category defined by SEBI: they invest exclusively in securities maturing in just one business day, such as the tri-party repo (TREPS), reverse repo and overnight call money. Because every holding matures the next day, there is virtually no interest-rate risk and negligible credit risk - the portfolio is effectively re-lent each morning at the prevailing overnight rate. Returns are therefore the lowest among debt funds and track money-market overnight rates closely, but capital is about as stable as a fund can be. The typical role is parking very short-term money - emergency reserves, money awaiting deployment, or treasury balances for businesses - where preservation and same-day-style liquidity matter far more than yield. They are also used as the destination for systematic transfer plans (STPs) into equity. The default benchmark on FindMF is the NIFTY 1D Rate Index. We compute each Overnight fund's trailing returns and risk metrics from AMFI-published daily NAVs using a disclosed methodology, so you can compare 76 funds on like-for-like terms rather than on marketing claims.

Who it suits: Anyone needing an ultra-safe, highly liquid place to park cash for a few days to a few weeks.

3% of the 35 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.