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Introduction to Nippon India Overnight Fund

An open-ended debt scheme investing in overnight securities

Ever wondered why a one-day match in cricket has higher viewership than a test match? Because, you can then go to bed knowing the result. Even better if it’s a T20 format. The build-up, the excitement and the satisfaction of certainty makes you want more of it. If a similar approach to investment gets you charged up, let us interest you in our latest fund that provides you with everyday returns at a comparatively lower risk.

Decoding the Nippon India Overnight Fund

In simple words, it is a type of debt mutual fund that invests in debt and money market instruments that mature in a day. Yes, you read it right! One business day, is all you need to know the result of previous day’s investment. Interesting, isn’t it?

Do you have a lumpsum amount that needs to be temporarily parked? The reason can be creation of an emergency fund or even just to time the market. This is the fund for you. It offers you a moderate income at a relatively lower risk. Your parking window can be from one day to one month. This fund is apt for you if you are also looking at partial withdrawals.

How does it work?

As each business day starts, the fund manager would purchase securities with a maturity period of 1 day. Hence, each day the interest gets added to the NAV and new purchase happens. In effect, you are earning returns every day.

Since, the maturity period on offer is a single day, it minimizes any of the risks one might typically associate with the securities like change in interest rate or change in credit rating of the issuer etc.

Features to be noted

Some additional features to be noted are as below-

  • Relatively lower risk
  • Mostly the investments made in debt and money market instruments maturing next business day
  • Every day returns
  • Investment Horizon 1 Day to 1 Month
  • Zero lock-in period
  • Redemptions on a T+1 basis
  • First Purchase- Rs 5,000 and in multiples of Re.1 thereafter
  • Additional Purchase- Rs 1,000 and in multiples of Re.1 thereafter
  • Various plans/options under Direct/Regular plans, like:
    • Growth/Dividend Option
    • Daily/Weekly/Monthly/Quarterly Dividend Reinvestment Option
    • Monthly/Quarterly Dividend Payout Option
Nippon India Overnight Fund

This product is suitable for investors who are seeking*

  • Income over short term
  • Investment in debt & money market instruments with overnight maturity

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Riskometer - Nippon India Mutual Fund  

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material.

Please feel free to get in touch with us at Nippon India Mutual Fund for further details and procedures. You may call us at 18602660111 or email at [email protected].


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