Synopsis: Overnight mutual funds invest in one-day maturity debt instruments and are designed to offer high liquidity with relatively low risk. This article lists overnight mutual funds accepting fresh SIP investments, along with their returns, minimum SIP, expense ratio, AUM and NAV.
Overnight funds are the type of debt mutual funds which only invest in those securities which have a maturity period of just one day. Because of the daily maturity of the portfolio and its reinvestment into new overnight securities, overnight funds do not face any significant interest rate risk and credit risk.
Unlike equity funds, overnight funds are not for earning large profits in the long run. Rather, these are used for providing liquidity, protecting capital and generating fairly stable returns from funds which will soon be needed.
Top 6 Overnight Mutual Funds Accepting New SIP Investments
1. Franklin India Overnight Fund
- NAV: ₹1,423.54
- AUM: ₹1,120.28 Cr
- Expense Ratio: 0.07%
- Exit Load: Nil
- 1-Year Return: 5.40%
- Minimum SIP: ₹500
2. Bajaj Finserv Overnight Fund
- NAV: ₹1,197.28
- AUM: ₹948.48 Cr
- Expense Ratio: 0.12%
- Exit Load: Nil
- 1-Year Return: 5.39%
- Minimum SIP: ₹1,000
3. Tata Overnight Fund
- NAV: ₹1,440.57
- AUM: ₹3,894.84 Cr
- Expense Ratio: 0.09%
- Exit Load: Nil
- 1-Year Return: 5.38%
- Minimum SIP: ₹500
Also read: This Edelweiss Mutual Fund Delivered 65.31% Returns in 1 Year; Should You Invest Now?
4. LIC MF Overnight Fund
- NAV: ₹1,414.51
- AUM: ₹1,212.21 Cr
- Expense Ratio: 0.09%
- Exit Load: Nil
- 1-Year Return: 5.35%
- Minimum SIP: ₹200
5. ICICI Prudential Overnight Fun
- NAV: ₹1,470.38
- AUM: ₹13,075.29 Cr
- Expense Ratio: 0.09%
- Exit Load: Nil
- 1-Year Return: 5.35%
- Minimum SIP: ₹500
6. DSP Overnight Fund
- NAV: ₹1,461.64
- AUM: ₹3,002.41 Cr
- Expense Ratio: 0.11%
- Exit Load: Nil
- 1-Year Return: 5.35%
- Minimum SIP: ₹100
Top 6 Overnight Mutual Funds That Allow New SIP Investments
Note: Groww. NAV, AUM, expense ratio and other data are as of July 2, 2026.
Key Takeaways
- Overnight funds invest in securities with a maturity of just one day, making them one of the lowest-risk categories of mutual funds.
- Returns currently range between 5.35% and 5.40% over one year.
- Franklin India Overnight Fund has the lowest expense ratio (0.07%) among the listed funds.
- ICICI Prudential Overnight Fund manages the largest AUM at over ₹13,000 crore.
- DSP Overnight Fund has the lowest minimum SIP requirement at ₹100.
- All six funds have no exit load, allowing investors to redeem without exit charges.
Who Should Invest?
Overnight funds are ideal investments for those who have surplus money that needs to be parked for a few days to a few months but at the same time wish to focus more on the safety of capital and liquidity. At the same time, they are also considered ideal choices for creating an emergency fund or earning some market-based returns in a relatively risk-free manner. Those who have a long-term wealth-building objective will find other growth-oriented funds a better choice.
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
