The average AUM of overnight mutual fund schemes has grown five times over the last 10 months to Rs 52,524.98 crore as on January 31, 2020 from Rs 11,566.84 crore as on April 30, 2019. The number of folios under overnight funds at 46,763 as on January 31, 2020, have more than doubled in the last 10 months, from 21,363 as on April 30, 2019.

Overnight funds within the open-ended debt mutual fund schemes is the newest category investing in debt and money market instruments with overnight maturity of just 1 day. Overnight funds are considered most liquid and relatively safest debt schemes.

Overnight fund category was created when SEBI re-categorised mutual fund schemes to bring about uniformity in products in October 2017.

“Overnight Funds are ideal for the first time investors, new to mutual funds. Although investments are market-linked, this category is considered to be a good start towards building a financially sound mutual fund portfolio,”says NS Venkatesh, Chief Executive, Amfi.

The fact that AAUM in overnight funds have grown five times and commensurate folios too, growing more than two times, is a very good indicator of the growing affinity of the investors towards Overnight Funds, adds Venkatesh.


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