Overnight Fund — Mutual Fund Term Explained

The safest debt fund — invests only in overnight (1-day maturity) instruments. Virtually no risk. Returns slightly lower than liquid funds.

Overnight funds invest exclusively in securities with 1-day maturity, primarily overnight repos. The absolute safest mutual fund category with virtually zero credit and interest rate risk.

Related terms

• Liquid Fund — A debt fund investing in money market instruments with maturity up to 91 days. Very low risk, T+1 redemption, returns better than savings accounts.
• Money Market Fund — A debt fund investing in money market instruments with maturity up to 1 year. Slightly higher yield than liquid funds.

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