Debt: Overnight

What is it?

Overnight debt funds invest in overnight instruments with a maturity of 1 day.

Objective

The primary objective of these funds is to provide a low-risk parking option for the surplus funds of the investors. They also help in providing high liquidity as these funds have a maturity period of 1 day.

Suitability and opinion

These funds are a good option for investors with a very short-term investment horizon (a few days). We believe that these funds can be a suitable option for investors who are looking for a safe and liquid investment option for their short-term cash needs. However, it is important to note that Debt Overnight funds may offer lower returns than other debt mutual fund categories and may not be suitable for long-term investment goals.