Mutual Funds
Overnight fund
Liquid
Zerodha Overnight Fund
Zerodha Overnight Fund invests in 1-day maturity reverse-repo and call-money instruments. Very low risk, daily redemption, suitable for parking idle cash.
Scheme parameters
| Attribute | Value |
|---|---|
| Category | Overnight Fund (debt) |
| Benchmark | NIFTY 1D Rate Index |
| TER (Direct) | ~0.10% |
| Minimum investment | Rs 100 |
| Redemption | T+1 (next working day) |
| Exit load | Nil |
Why overnight funds
- Lowest interest-rate risk: 1-day duration; no MTM volatility.
- Liquid alternative: Better than savings account (typically 6.5%+ vs 3-4%).
- Safer than liquid funds: No interest-rate exposure beyond 1 day.
Comparison
| Product | Tenor | TER | Risk |
|---|---|---|---|
| Savings account | On-demand | 0 | Bank risk (insured up to Rs 5 lakh) |
| Overnight fund | 1 day | ~0.10% | Very low |
| Liquid fund | Up to 91 days | ~0.20% | Low |
| LIQUIDCASE ETF | 1 day | ~0.25% | Very low (ETF, intraday) |
Suitability
- Emergency fund / contingency cash.
- Idle trading capital between deployments.
- Conservative investors needing daily liquidity.
Tax
Taxed as debt mutual fund: post-FY 2023-24 amendments, gains taxed at slab rate regardless of holding period.
See also
- Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE)
- Park idle cash in LIQUIDCASE
- Zerodha Fund House overview
- Zerodha Multi Asset Passive FoF
- Zerodha Gold ETF
- Zerodha Silver ETF
- Zerodha Nifty LargeMidcap 250 Index Fund
- Zerodha Nifty 100 Index Fund
- Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund
- How Zerodha AMC differs from regular AMCs
- Zerodha AMC philosophy (passive-only)
- Zerodha Asset Management Company structure
- Vishal Jain (Zerodha AMC CEO)
- Invest in Zerodha Fund House via Coin
- Overnight fund
- Liquid fund
- Debt mutual fund
- Total expense ratio
- Direct vs regular plan
- Capital gains tax in India
- Mutual funds in India
- Zerodha
- Coin (Zerodha)
- Buy T-Bills on Zerodha
- Reserve Bank of India
- SEBI
- AMFI
External references
References
- Zerodha Fund House, Overnight Fund SID, zerodhafundhouse.com.
- SEBI Categorisation of Mutual Funds, sebi.gov.in.