How Overnight fund works
The portfolio resets frequently, limiting duration exposure, but the fund still has expenses, operational settlement and residual market or counterparty considerations. One-day holdings do not mean investors receive money instantly.
A rupee example
A ₹1 lakh holding changes with the scheme's NAV each day; a redemption still follows the stated transaction and settlement process.
The example isolates one idea so the arithmetic is visible. Real outcomes can include taxes, fees, cash-flow timing and market movement that the simplified example does not model.
Why it matters for your family
Overnight funds can hold money whose priority is low duration risk, but families should compare access, bank convenience and after-tax outcome for the actual holding period.
Questions people ask
- What does Overnight fund mean?
- An overnight fund is a debt mutual-fund category investing in securities with one-day maturity under the applicable rules.
- Why does Overnight fund matter for a family?
- Overnight funds can hold money whose priority is low duration risk, but families should compare access, bank convenience and after-tax outcome for the actual holding period.
- Where can I verify information about Overnight fund?
- Start with SEBI Investor, linked on this page, and the current official document for the product or tax year involved.