As liquid funds faced challenges in recent times, investors turned to overnight funds for their attractive features. Providing higher returns and maintaining liquidity, these debt funds offer initial investment protection.
Curious to learn more about their work and benefits? Read on to dive deeper into this lucrative investment avenue.
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Overnight Funds intend to provide investors with better utilization of cash reserves through short investment tenures, high liquidity, and low risk. These features optimize surplus funds and ensure efficient and quick redemptions.
Discovering how Overnight Funds operate and their investment potential requires insight into their allocation and income generation.
Overnight Funds offer multiple advantages, especially to retail and conservative investors seeking an alternative to traditional bank deposits.
Overnight Funds suit those with short investment horizons, making them ideal for investors with goals of a week or less. They provide flexibility, allowing redemptions after just one day, offering an advantage over liquid funds. Additionally, investors can use Overnight Funds as a medium to shift capital, earning higher returns while preserving their principal.
Considerations for investing in overnight funds:
Overnight funds offer a secure and liquid investment option for short-term goals. While prioritizing capital protection, investors should align these funds with their overall financial strategy for optimal results.
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