Overnight Funds are a type of low-risk debt mutual fund that invest in ultra-short-term instruments with a maturity of just one day. They are designed for investors who want safety, liquidity, and modest returns without locking in their money for long periods.

1. High Safety: Invests in high-quality instruments with minimal risk.
2. Instant Liquidity: Redeem anytime with returns credited quickly.
3. Better Returns than Savings Accounts: Ideal for parking idle funds for a few days.
4. Professional Management: Fund managers handle investments to ensure security and optimize returns.

• Ultra-short duration (1-day maturity)
• Low-risk and highly liquid
• Daily NAV calculation
• Diversified portfolio for added security

1. Safer alternative to bank deposits
2. Quick access to money
3. Ideal for short-term fund parking
4. Compounding of daily returns

1. Returns are modest compared to long-term investments
2. Minimal credit risk exists
3. Not suitable for long-term wealth creation

Short-Term Gains:Taxed at your income slab if held ≤ 3 years

Long-Term Gains:Taxed at 20% with indexation if held > 3 years