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Why should you invest in Bajaj Finserv Overnight Fund?

Why should you invest
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An overnight fund is a type of mutual fund that invests in securities with a one-day maturity period. These funds aim to provide a relatively stable option for those looking to park their funds for very short durations – as short as one day. The key features of overnight funds include low-interest rate risk and low credit risk, making them a suitable option for conservative investors seeking relative stability and liquidity over a high return potential.

  • Table of contents
  1. The Bajaj Finserv Overnight Fund
  2. Who should invest in this scheme?
  3. Benefits of investing in the Bajaj Finserv Overnight Fund
  4. FAQs

The Bajaj Finserv Overnight Fund

The Bajaj Finserv Overnight Fund is an open-ended debt scheme from Bajaj Finserv Asset Management Ltd. that primarily invests in overnight securities. Let’s take a closer look at the various aspects of this fund and its investment strategy.

Investment objective

The scheme aims to provide reasonable returns commensurate with low risk and high level of liquidity through investments made primarily in overnight securities having a maturity of 1 business day. There is no assurance that the investment objective of the Scheme will be achieved.

Brief Asset allocation

The fund maintains a straightforward and low-risk asset allocation. It invests 100% of its assets in overnight securities, including TREPS, government repos, treasury bills, government securities, and other instruments as specified by the Reserve Bank of India (RBI) and approved by Securities and Exchange Board of India (SEBI).

Who should invest in this scheme?

The scheme provides an investment avenue for investors looking for a short-term parking place for their funds. By investing in debt and money market instruments that mature overnight, the fund strives to achieve a balance between relative stability and liquidity. The fund manager may also invest in liquid funds or overnight mutual fund schemes if suitable debt instruments are not available or do not present favorable risk-reward conditions.

The Bajaj Finserv Overnight Fund is most suitable for investors who seek to invest their surplus funds with an investment horizon of just one day. This fund can also be suitable for corporate treasuries and retail investors with idle money. Additionally, those looking for an alternative to keeping cash in savings accounts with relatively low-interest earnings can consider this scheme.

Benefits of investing in the Bajaj Finserv Overnight Fund

  • Low risk: The fund has minimal interest rate and low credit risk.
  • High liquidity: The fund offers high liquidity, making it suitable for short-term investments.
  • Low volatility: Because the fund invests in securities that mature in one day, the exposure to market volatility is reduced. This feature makes it a suitable investment for those who prioritize the relative stability of their capital over potentially high returns.
  • Relatively stable returns: While the return potential is modest, it is relatively stable compared to other market-linked investments for a similar investment duration.
  • Professional management: Like all Bajaj Finserv Mutual Fund schemes, this fund is managed by experienced professionals at Bajaj Finserv Asset Management Ltd., who have an in-depth understanding of the debt market.


The Bajaj Finserv Overnight Fund offers a suitable investment option for those looking for a relatively stable and liquid avenue to park their funds, even if just for a day. With the fund’s focus on overnight securities, investors are less exposed to the risks inherent in other debt instruments. The fund can serve as a smart parking ground for surplus cash, offering an effective buffer within a diversified portfolio. With its low-risk profile and strict investment discipline, this scheme can be considered by cautious investors seeking to mitigate volatility and risk. Whether it is for an individual with idle cash or a corporate treasurer managing vast sums, the Bajaj Finserv Overnight Fund is a relatively stable, liquid, and efficiently managed financial tool.


What is an overnight fund?
An overnight fund is a mutual fund that invests in securities with a one-day maturity, offering relatively low risk and high liquidity.

Is the Bajaj Finserv Overnight Fund suitable for all investors?
It is most suitable for investors looking for short-term avenues to park their funds with easy access to liquidity.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This document should not be treated as an endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purposes only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals, and horizon. This information is subject to change without any prior notice.