Everything You Need To Know About ICICI Overnight Fund

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Everything You Need To Know About ICICI Overnight
Fund
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ICICI prudential overnight fund is a kind of debt
fund that invests in debt securities maturing the
next day. Hence these funds have the shortest
maturity amongst all debt funds carrying the
least interest rate risk and default risk. While
we cant assume that Overnight Funds have no
risk, it is safe to assume that they have the
least risk amongst all funds put
together. ICICI prudential overnight fund
direct plan growth is considered ideal for
parking large sums of cash for a very short
period by taking the least risk when the sole
purpose is to ensure the capital is safe without
much expectation for returns.
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Lets look at the purpose of Overnight Funds

• The goal of overnight funds is to allow investors
  to make better and more profitable use of their
  cash reserves. These features of the funds make
  its purpose more feasible-
• Short investment horizon Overnight Mutual Funds
  have a one-day maturity period. This short time
  horizon enables investors to make better use of
  the extra cash they have on hand.
• Low-risk The funds' exposure to risk is kept to
  a bare minimum due to their short investment
  horizon and instant maturity.
• High-liquidity The aforementioned funds are
  thought to be the most liquid investment
  securities. It allows investors to access their
  funds quickly and efficiently.

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Major Advantages of ICICI Overnight Fund
Better utilization of idle funds
Low-risk factor
Safe against market volatility
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Better utilization of idle funds
The fund serves as a beneficial investment option
for those investors who want to use their extra
cash to earn a higher profit at a minimum risk.
Unlike most bank deposits and fixed deposits with
long maturities, these funds allow investors to
profit in a shorter period of time.
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2. Low-risk factor
As previously stated, this fund is an open-ended
liquid fund with a low risk. Because of this
feature, it is a suitable investment option for
those with a low risk appetite. It also works in
favor of such investors who tend to possess a
conservative outlook towards investments.
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3. Safe against market volatility
Interest rate changes made by the RBI or changes
in a borrower's credit ratings have little to no
effect on such funds. Its short investment
horizon protects investors in such funds from
risks such as interest rate fluctuations,
liquidity uncertainty, credit risk, and market
volatility.
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To make the most of the investments in an ICICI
overnight fund, investors must equip themselves
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