Our Funds / Debt Funds

Bandhan Overnight Fund - Direct Plan

An open-ended Debt Scheme investing in overnight securities. A scheme with relatively low interest rate risk and relatively low credit risk.

DebtInception Date:18/01/2019
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What is an Overnight Fund?

An overnight mutual fund is a type of debt fund that invests in securities with a maturity period of 1 day. At the start of each business day, the Asset Under Management (AUM) is in cash; bonds that mature overnight are purchased, and the cycle continues. Overnight funds offer investors the opportunity to invest their idle funds for a short period of time and potentially make some profit with minimal risk involved.

Due to their short investment horizon, overnight fund returns are relatively lower. However, these funds may be beneficial for investors seeking a short-term investment. Moreover, overnight debt funds are highly liquid, and investors can redeem their investments whenever required. Additionally, overnight liquid funds do not have any entry or exit load and the investor’s assets can be easily accessed during an emergency.

Overnight mutual funds primarily invest in highly liquid debt and money market instruments. Consequently, these funds are categorised as a low-risk investment option. The short investment horizon makes these funds less vulnerable to market volatility and interest rate fluctuations. However, all mutual funds are subject to risks and are not completely risk-free.

Overnight debt funds are subject to taxation, similar to debt funds. Units held for over three years are subject to LTCG at 20% with indexation benefits. Units held for less than three years are classified as Short Term Capital Gains. Profits are added to the investor’s income and taxed according to the investor’s income tax slab.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load

    Nil

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Annualised Returns(as on 30th Jun, 2024)6.70%1yr5.35%3yr4.66%5yr
NAV 1292.4105 as on 10/07/20241 Day Change: 0.22(0.02%)

Scheme is suitable for building emergency corpus or for temporary parking of surplus (minimum recommended investment horizon 1 day)

Tier 1 Benchmark : Nifty 1D Rate IndexAlternate Benchmark : CRISIL 1 Year T-Bill Index

Performance as on 28th June 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year18/01/2019 Since inception1 year3 year5 year10 year18/01/2019 Since inception
Bandhan Overnight Fund - Regular Plan - Growth6.705.354.66N.A.4.7810,67211,69212,562N.A.12,897
6.855.514.845.764.9510,68711,74912,66917,52213,011
7.145.505.556.425.7210,71611,74413,10518,64513,542
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Brijesh Shah (w.e.f 01/02/2019)

View fund performance of other funds managed by Mr. Brijesh Shah

Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.

Taxation:

For taxation, please refer the link :  https://bit.ly/3spfzbo

Bandhan Overnight Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Low Risk.

Nifty 1D Rate Index

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To generate short term optimal returns in line with overnight rates and high liquidity
  • To invest in money market and debt instruments, with maturity of 1 day

Who Should Invest in Overnight Mutual Funds?

Overnight mutual funds are fundamentally a debt fund and are suitable for investors seeking investments in debt and money market instruments with a maturity period of 1 day. As a result, overnight funds are a highly liquid investment option; investors can liquidate their investments whenever required. Overnight funds are thus suitable for investors seeking short-term, liquid investment options.

Due to their short investment horizon, overnight mutual funds are classified as a low-risk investment option. They are relatively less vulnerable to market volatility and fluctuations. As a result, these funds are suitable for risk-averse investors.

Overnight funds returns may potentially be more significant than returns from a traditional savings account. Consequently, investors seeking to deposit idle funds may consider investing in overnight funds.

Overnight mutual funds are subject to taxes similar to debt funds and may consequently not be suitable for investors seeking tax-saving investments.

FAQs on Overnight Funds

What is an overnight fund?

An overnight fund is a type of debt fund investment. The meaning of an overnight fund is that it primarily invests in debt and money market securities that mature in 1 day.

Is it safe to invest in overnight funds?

Overnight liquid funds may be a relatively safe investment option due to their short time horizon and investments in debt and money market securities. However, no mutual funds are completely safe. All mutual funds are subject to market risks.

Who should invest in overnight mutual funds?

Overnight mutual funds are a low-risk and short-term investment option. They may be suitable for risk-averse investors seeking short-term investments in debt and money market instruments. They may not be suitable for investors seeking wealth creation, tax-saving or long-term investments.

Are overnight funds liquid?

Yes, overnight funds are a liquid investment option. They invest in debt and money market instruments with a maturity of one day. Consequently, investors have access to their funds whenever required.

What are the advantages of overnight debt funds?

Overnight funds are a low-risk investment option and may benefit risk-averse investors. Moreover, they are suitable for the short term. Investors seeking to park their excess or idle funds for a short period of time may benefit from investing in overnight funds as they may offer potentially higher returns than savings accounts.

What are the disadvantages of overnight mutual funds?

Overnight funds returns are relatively lower than equity and other mutual funds. Investors seeking wealth creation may not benefit from overnight mutual funds. Overnight funds are not taxed favourably and are subject to STCG and LTCG tax. This may be a disadvantage for investors seeking tax-saving investments.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.