Liquid on WebNoteshttps://v2.webnotes.in/tags/liquid/Recent content in Liquid on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000Zerodha Overnight Fundhttps://v2.webnotes.in/zerodha-overnight-fund/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/zerodha-overnight-fund/<p><strong>Zerodha Overnight Fund</strong> invests in 1-day maturity reverse-repo and call-money instruments. Very low risk, daily redemption, suitable for parking idle cash.</p> <h2 id="scheme-parameters">Scheme parameters</h2> <table> <thead> <tr> <th>Attribute</th> <th>Value</th> </tr> </thead> <tbody> <tr> <td>Category</td> <td>Overnight Fund (debt)</td> </tr> <tr> <td>Benchmark</td> <td>NIFTY 1D Rate Index</td> </tr> <tr> <td>TER (Direct)</td> <td>~0.10%</td> </tr> <tr> <td>Minimum investment</td> <td>Rs 100</td> </tr> <tr> <td>Redemption</td> <td>T+1 (next working day)</td> </tr> <tr> <td>Exit load</td> <td>Nil</td> </tr> </tbody> </table> <h2 id="why-overnight-funds">Why overnight funds</h2> <ul> <li><strong>Lowest interest-rate risk</strong>: 1-day duration; no MTM volatility.</li> <li><strong>Liquid alternative</strong>: Better than savings account (typically 6.5%+ vs 3-4%).</li> <li><strong>Safer than liquid funds</strong>: No interest-rate exposure beyond 1 day.</li> </ul> <h2 id="comparison">Comparison</h2> <table> <thead> <tr> <th>Product</th> <th>Tenor</th> <th>TER</th> <th>Risk</th> </tr> </thead> <tbody> <tr> <td>Savings account</td> <td>On-demand</td> <td>0</td> <td>Bank risk (insured up to Rs 5 lakh)</td> </tr> <tr> <td>Overnight fund</td> <td>1 day</td> <td>~0.10%</td> <td>Very low</td> </tr> <tr> <td>Liquid fund</td> <td>Up to 91 days</td> <td>~0.20%</td> <td>Low</td> </tr> <tr> <td>LIQUIDCASE ETF</td> <td>1 day</td> <td>~0.25%</td> <td>Very low (ETF, intraday)</td> </tr> </tbody> </table> <h2 id="suitability">Suitability</h2> <ul> <li>Emergency fund / contingency cash.</li> <li>Idle trading capital between deployments.</li> <li>Conservative investors needing daily liquidity.</li> </ul> <h2 id="tax">Tax</h2> <p>Taxed as debt mutual fund: post-FY 2023-24 amendments, gains taxed at slab rate regardless of holding period.</p>