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HDFC Overnight Fund

HDFC_Overnight_Fund
HDFC Overnight Fund

Imagine that you have planned a trip for a few days. But before you leave, you make sure all your valuable things, which you are not going to need for the next few days, are stored safely in a locker during this period. In the investment world, HDFC Overnight Fund is just like that locker.

Among all the categories of mutual funds, Overnight Funds are considered to be the least risky. They are open-ended debt mutual fund schemes that invest in overnight securities with a maximum maturity of one day. This means that the securities mature in a day, and the entire cash is reinvested in other one-day maturity securities. Due to their very short investment maturities, overnight funds are not impacted by interest rate changes, and also have the lowest credit risk among all other fund types.

Overnight funds are highly liquid. HDFC Overnight Fund, under normal circumstances, endeavors to credit redemption proceeds on a T+1 basis – i.e., within one business day from the acceptance of the redemption request. It is also the only type of fund (other than liquid funds) that announces NAVs on all business days and public holidays preceding a business. Thus, it is possible to purchase units at the preceding day’s NAV, and redeem them on the same day at that day’s NAV (provided requests are received within applicable cut off timings).

Overall, HDFC Overnight Fund carries very little risk. Just like the locker you used before your trip, HDFC Overnight Fund is ideal for investors who want to safely park their undeployed funds for a short period and also use it as a channel to systematically transfer funds to other investment avenues. Investments in HDFC Overnight Fund can also be maintained as a corpus for contingency purposes, i.e., as funds which are invested with minimal risk and quickly resorted to in emergencies.

The views are not an investment advice. Please seek professional advice before taking any investment decisions. HDFC Mutual Fund is not guaranteeing or assuring any returns.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY


<p style="font-style:italic; border-bottom:0 font-size: 15px;">Disclaimer: Content Produced by HDFC MUTUAL FUND </p>
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