Relatively stable returns
Overnight funds offer relatively stable returns to investors that may be marginally higher than the returns provided by a savings account.
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BAJAJ FINSERV ASSET MANAGEMENT LIMITED.
The scheme aims to provide reasonable returns commensurate with low risk and high level of liquidity through investments made primarily in overnight securities having maturity of 1 business day.
However, there is no assurance that the investment objective of the Scheme will be achieved.
Bajaj Finserv Overnight Fund is an open-ended scheme investing in debt, money market instruments and cash and cash equivalents with a maturity of one day. The very short maturity of the underlying securities can mitigate the interest and credit rate risk of the fund while providing high liquidity.
Nimesh Chandan has over 24 years of experience in the Indian Capital Markets. He has spent 18 years in Fund Management- managing and advising domestic and international investors, retail as well as institutional. Prior to joining Bajaj Finserv Asset Management Ltd., he has worked with Canara Robeco Asset Management as Head of Investments, Equities (Domestic and Offshore). He has also worked with other asset management companies including Birla Sunlife Asset Management, SBI Asset Management and ICICI Prudential Asset Management.
Siddharth Chaudhary joined the Company in July 2022 as a Senior Fund Manager – Fixed Income. Prior to this, he was associated with Sundaram Asset Management Co. Ltd from April 2019 - July 2022 as Head Fixed Income – Institutional Business. From April 2017 – March 2019, he served as a Head – Fixed Income, and from August 2010 – March 2017 as a Fund Manager – Fixed Income with Sundaram Asset Management Co. Ltd. During June 2006 – September 2010, he was working as Senior Manager, Treasury Dept in Indian Bank.
Instruments – Debt (Including floating rate debt instruments) and money market instruments Indicative allocations – Maximum=100%, Minimum= 0%.
Risk profile – Low to moderate
An open ended debt scheme investing in overnight securities with relatively low interest rate risk and relatively low credit risk.
Fresh Purchase (Incl. Switch-in): Minimum of Rs. 100/- and in multiples of Re. 1/- thereafter.
Systematic Investment Plan (SIP):
The applicability of the minimum amount of installment mentioned is at the time of registration only
For more information, please refer SAI
Not applicable
Nil
to view Total Expense Ratio
| Interest rate Risk |
Credit Risk | ||
|---|---|---|---|
| Relatively Low (Class A) |
Moderate (Class B) |
Relatively High (Class C) |
|
| Relatively Low (Class I) |
A-I | ||
| Moderate (Class II) |
|||
| Relatively High (Class III) |
|||
A scheme with relatively low interest rate risk and relatively low credit risk.
The PRC matrix identifies the highest amount of potential risk that a debt mutual fund can assume.
This regulation was implemented by SEBI on December 1, 2021, requiring fund houses to categorize schemes under a potential risk class (PRC) matrix.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Overnight funds are open-ended schemes investing in securities that mature in just one day. This could include overnight debt instruments such as reverse repos and other short-term money market assets. Because the underlying investments mature daily, overnight funds generally carry minimal interest rate risk and low credit risk compared with other debt funds.
The main objective of an overnight fund is to offer a relatively stable and highly liquid option for parking money for extremely short periods—sometimes even for a single day. They are often used by investors or institutions looking to temporarily hold surplus cash without exposing it to significant market fluctuations.
When investing in the Bajaj Finserv Overnight Fund, you can choose between a Direct Plan and a Regular Plan.
Bajaj Finserv Overnight Fund aims to generate income by investing in debt, money market instruments, and cash and cash equivalent with overnight maturity. Since the securities in these funds mature the next day, these funds are not exposed to the kind of interest rate risk or default risk like the rest of the debt funds. Investing in Bajaj Finserv Overnight Fund can help meet the needs of the investors who want to deploy their funds for a very short period.
Easy access to funds, suitability for short-term goals, relatively stable returns, high liquidity, and comparatively low risk are some of the benefits of investing in Bajaj Finserv Overnight Fund.
Bajaj Finserv Overnight Fund can be a suitable option for investors who are seeking regular income over short term that may be in line with the overnight call rates. Also, investors who are looking to invest in money market and debt instruments with overnight maturity can consider investing in this scheme. Investors should consult their financial advisor in case of any queries.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
It is an open-ended debt mutual fund that primarily invests in Overnight securities or debt / money market instrument* maturing on or before the next business day. The fund seeks to offer reasonable returns with a high degree of liquidity and relatively low-interest rate risk.
*TREPS, Government Repo / Reverse Repo (in Government Securities), Treasury bills, Government securities (Issued by both Central and State governments) and any other like instruments as specified by the Reserve Bank of India from time to time and approved by SEBI from time to time having maturity of 1 business day.
Investments can be made online through Bajaj Finserv AMC’s investor portal or your trading account. To invest offline, you can fill out the application form and submit to any official point of acceptance of the AMC.
The Net Asset Value (NAV) is calculated at the end of every business day. You can check the lates NAV it at the top of this page.
The fund’s risk classification is based on the portfolio composition as well as SEBI guidelines and is subject to periodic review. Refer to the Riskometer on this scheme page and latest documents for the current risk level.
The Assets Under Management (AUM) changes depending on market conditions and investor activity and is disclosed periodically by the AMC. For the latest AUM, check the monthly Factsheet.
The holdings may shift in response to market conditions and fund manager decisions. For the latest holdings, please refer to the monthly Factsheet.
The fund invests predominantly in Overnight securities or debt / money market instrument* maturing on or before the next business day. For more details on the asset allocation, please check the Scheme Information Document .
While the fund aims to offer the potential for relatively stable returns, they are not guaranteed and depend on market conditions. Past performance may or may not be sustained in future.
There is no lock-in period. However, investors are advised to review the scheme-related documents for any applicable exit load or other conditions.
The expense ratio is reviewed periodically and can change. For the latest expense ratio, see the fund’s factsheet or the Total Expense Ratio section on the website.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
