personal-finance
Overnight Funds: For very short term parking
Aug 03, 02:08

Do you have a large sum of money lying idle and want to park it for a very short period of time without taking any risk? Consider overnight funds. These schemes invest in overnight securities maturing in one day. Since these schemes primarily invest in the call money market for one day, there is little interest rate or credit risk. These funds do not charge any exit load and score high on liquidity. You can park idle funds, especially cash lying idle in business, for a very short period. These schemes can also be used as a feeder scheme while investing in equity funds, using a systematic transfer plan. As on June 30, Rs 85,153 crore was invested in overnight funds, according to AMFI.

Overnight Funds Returns