What are Overnight Funds?

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Overnight funds are considered the safest of all mutual funds. If you are new to Mutual Funds and want to try them out before going the whole hog, then overnight funds are for you. 

Overnight Funds are a type of open-ended debt scheme that invests in debt securities maturing the next day. This means, the securities in the portfolio mature every day and the fund manager uses the proceeds to buy new securities for the portfolio maturing the very next day. Since the securities in these funds mature the next day, these funds are not exposed to the kind of interest rate risk or default risk like the rest of the debt funds. This low risk profile also implies they offer the least return.

Overnight funds

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