Ultra-Safe Debt
Overnight Mutual Funds
Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.
Expected Yield6.0% - 6.8% p.a.
Lock-In TenureNone
Risk LevelLow Risk
Tax StatusTaxable as Slab
Overview & Statutory Background
Overnight funds invest only in securities that mature the next business day. With almost no interest-rate or credit risk, they suit investors who prioritise capital safety over yield.
Key Features & Operational Guidelines
Invests in TREPS and overnight repos
Almost zero credit and interest rate risk
No exit load in most schemes
Redemption in 1 business day
Who is Eligible to Invest?
- •All individual and institutional investors with completed KYC
Indian Taxation Breakdown
| Stage | Tax Treatment |
|---|---|
| Initial Investment | No deduction. |
| Interest & Returns | Gains taxed at slab rate. |
| Maturity / Withdrawal | Slab-rate taxation on redemption. |
Advantages & Limitations
Key Advantages (Pros)
- ✓Very high safety
- ✓Daily liquidity
- ✓No exit load
Important Limitations (Cons)
- ✕Lower yield than liquid funds
- ✕Reinvestment risk when rates fall
- ✕Taxed at slab
Overnight Mutual Funds FAQs
Choose overnight for maximum safety and very short horizons. Choose liquid for slightly better yield with marginally higher risk.
Calculate Compound Returns
Use our interactive calculators to simulate exact growth schedules for this asset.