Zerodha Overnight Fund

What is the Zerodha Overnight Fund?
Zerodha Overnight Fund is a low-risk mutual fund designed for investors looking to park their surplus funds. It invests primarily in government-backed securities with a 1-day maturity, aiming to provide an efficient way to manage short-term funds with a relatively low interest rate and credit risk.

What type of scheme is Zerodha Overnight Fund?
 An open ended debt scheme investing in overnight securities. A Relatively Low Interest Rate Risk and Relatively Low Credit Risk.

What is the main investment  of this scheme?
The investment objective of the Scheme is to generate returns commensurate with low risk and providing high level of liquidity, through investments made in debt and money market securities having maturity of 1 business day including TREPS (Tri-Party Repo).

What type of instruments does the Zerodha Overnight Fund invest in?
The scheme primarily invests debt and money market instruments with overnight maturity.  

Can the scheme invest in government securities and treasury bills (G-secs and T-bills)?
Yes, the scheme may deploy up to 5% of its net assets in G-secs and/or T-bills with a residual maturity of up to 30 days, for the purpose of placing the same as margin and collateral for certain transactions.

How liquid is this investment?
Investors can subscribe to and redeem units of the scheme on all business days at NAV-based prices.  

What is the benchmark for this scheme?
The scheme is benchmarked against the Nifty 1D Rate Index.  

What is the New Fund Offer (NFO) period?
The NFO opens on March 19, 2025, and closes on April 02, 2025.

What is the minimum application amount during the NFO?
During the NFO, the minimum application amount is ₹100 and in multiples of ₹1 thereafter. 

Can I use a Systematic Investment Plan (SIP) for this scheme?
Yes, investors can enroll in a SIP for this scheme with various frequencies (daily, weekly, fortnightly, monthly, quarterly, half-yearly, or yearly). Please refer to SID for detailed information.  

What is the minimum amount for SIP installments?
The minimum installment amount for SIP is ₹100 for all frequencies.  

How can I redeem my units?
Unit holders can redeem their units by specifying the rupee amount or by specifying the number of units to be redeemed from the respective platforms they have made an investment.  

Is there any restriction on redeeming my units?
The redemption is permitted  to the extent of credit balance in the unit holder's account of the scheme  

What is the minimum redemption amount?
The minimum redemption amount is 'any amount' or 'any number of units' as requested by the investor at the time of redemption.  

How long will it take to receive my redemption proceeds?
The mutual fund will ensure to dispatch redemption proceeds within 03 business days from the date of redemption.

Is there any exit load for redeeming the units?
There is no exit load applicable on the Zerodha Overnight Fund.