SBI Overnight Fund
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More about this fund
|Ing Vysya Bank Ltd.||45.99%|
|Hdfc Bank Ltd.||12.9%|
|Indian Oil Corporation Ltd.||8.64%|
|Icici Bank Ltd.||0.63%|
|National Aluminium Co. Ltd.||0.15%|
About SBI Overnight Fund
SBI Overnight Fund is a debt mutual fund that invests in bonds that mature in one day. The fund functions such that at the start of each business day, the entire AUM would be in cash, overnight bonds would be purchased, they will mature the next business day, and the fund manager would take the cash and buy more overnight bonds and so on.The fund aims at providing investors an opportunity to invest in overnight securities maturing on the next business day.
Pros & Cons of SBI Overnight Fund
SBI Overnight Fund offers the following benefits:
- This fund is beneficial for investors who want to park their money with the least amount of risk with decent returns.
- Since the fund portfolio changes almost daily the default risk is taken care of usually. Certain drawbacks of SBI Overnight Fund
- Below average returns have been observed in the last few quarters.
- They are a type of sub category of liquid funds; hence all drawbacks of liquid funds apply here as well.
Fund Information and Statistics of SBI Overnight Fund
i) Inception / Launch date
SBI Overnight Fund was launched on October 01, 2002 by SBI Mutual Fund AMC.
ii) Risk level
Being an open ended liquid fund, this fund is a low risk bet and suitable for investors who have excess cash lying unused and think they might need it in a few days or months, you could consider parking it in this scheme.
Redemption of Units will be done by a repurchase/buyback by the fund house. Under normal circumstances, your fund house will dispatch as early as possible as per norms of SEBI.
iv) Fund Manager
The fund has been managed by Mr. R. Arun since April 2012. He has a total experience of 12 years.
v) Entry / Exit load
The fund doesn’t have any entry/exit load associated with it.
Tax benefits of investing in the fund
Long term capital gains tax applies to returns on this fund. A capital gain registered during a period of less than 3 years is defined as Short-term Capital Gain (STCG). A capital gain registered over a period of 3 years or more is defined as Long-term Capital Gains (LTCG). STCG from debt oriented funds are added to the investor’s income. They are then taxed according to his income slab. Long term capital gains tax from debt funds is taxed at the rate of 20% after indexation and 10% without the benefit of indexation.
About SBI Mutual Fund
SBI Mutual fund is formed by multiple investors who seek to invest on bonds, stock etc.The capital gains are registered with the Securities and Exchange Board of India (SEBI), and professional fund managers operate the funds and invest the fund capitals and attempts to produce capital gains.
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All investments come with risk. Risk is the volatility or fluctuation in the price (and returns) of the investment. Usually,
- High Risk = High possible returns
- Low Risk = Stable, relatively lower returns