Why to settle for less?
Invest in Overnight funds
Overnight Funds are the type of open-ended debt scheme that invests in debt securities maturing the next day. This means the securities in the portfolio mature every day and the fund manager uses the proceeds to buy new securities for the portfolio maturing the very next day. Benefits of investing in overnight funds:
Low default risk - It has the lowest default risk compared to all other debt funds due to the shortest maturity of the investment. It is suitable for conservative investors.
Lowest Interest rate risk - It has the lowest interest rate risk compared to other debt funds due to the shortest duration. Thus it's suitable for parking your surplus cash for the short term.
Highest liquidity - Liquidity is very high as securities are highly liquid in the portfolio. It's suitable for parking your emergency fund as well.
Mutual Fund investments are subject to market risk. Read all scheme-related documents carefully.