Bajaj Finserv Overnight Fund

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.
Bajaj Finserv Overnight Fund can be a suitable option for investors seeking regular income over the short term that may be in line with the overnight call rates. It can also suit investors with idle cash who want an avenue that can potentially offer better returns than a current account, or corporates who want to park surplus funds overnight. Investors looking for a short-term and liquid investment avenue with the potential to offer reasonable returns at relatively low risk can consider investing in Bajaj Finserv Overnight Fund.

Investments for Bajaj Finserv Overnight Fund start at Rs. 100.

Bajaj Finserv Overnight Fund - Regular and Direct Plans

When investing in the Bajaj Finserv Overnight Fund, you can choose between a Direct Plan and a Regular Plan.

Regular Plan

In this plan, investments are made through a distributor who provides assistance with scheme selection and the transaction process. Since the fund includes distributor commissions, the expense ratio is relatively higher. However, the support from a distributor can help investors align their investment choices with their financial goals and risk profile. The application process and subsequent investments and redemptions are also handled by the distributor on the investor’s behalf.

Direct Plan

This option may be suitable for investors who prefer to manage their investments independently, without distributor involvement. The expense ratio for direct plans tends to be lower. Over time, this lower cost structure may contribute to slightly better potential net returns.

How to invest in Bajaj Finserv Overnight Fund

You can invest in the Bajaj Finserv Overnight Fund through both online and offline modes.

• Offline Mode: If you're investing via a distributor, they will provide the necessary application form, help you fill it, and submit it on your behalf. Alternatively, you can invest directly with the AMC by submitting the filled application at an official point of acceptance.

• Online Mode: You can invest using your Demat or online trading account. You also have the option to visit the Bajaj Finserv AMC investor portal, create an account, and complete your investment through a simple and secure transaction process.

Taxation on Bajaj Finserv Overnight Fund

The Bajaj Finserv Overnight Fund is subject to the current tax rules for debt mutual funds. For investments made on or after April 1, 2023, any capital gains, irrespective of how long you stay invested, are taxed as per your applicable income tax slab.

As a result, there is no separate treatment for short-term or long-term capital gains , and indexation benefits do not apply. Investors are advised to consider their income tax slab and consult a financial advisor to assess how taxation may influence their overall returns.