 "Time to invest in overnight funds as they are still giving positive returns")
At a time when the one-month category average returns of most fund categories are in the negative, overnight funds are still giving positive returns. These are funds that invest in securities of one-day maturity.
Since the duration of securities they invest in is so low, these funds carry negligible duration or credit risk. They are hence the safest category among debt funds.
If you have a large sum of money that you don’t wish to deploy until markets stabilise, use this category. But it would not be wise to pull money out of existing investments to park here. In the case of long-term money, it is better to stay invested to benefit from a recovery.
Since the duration of securities they invest in is so low, these funds carry negligible duration or credit risk. They are hence the safest category among debt funds.
If you have a large sum of money that you don’t wish to deploy until markets stabilise, use this category. But it would not be wise to pull money out of existing investments to park here. In the case of long-term money, it is better to stay invested to benefit from a recovery.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%