IDFC Mutual Fund has filed draft documents with SEBI (Securities and Exchange Board of India) for IDFC Overnight Fund. This open-ended scheme will invest in overnight securities (with a maturity of one day). Overnight funds are considered low risk as they are have the least interest rate risk (they invest in very short maturity securities).
IDFC Overnight Fund will invest upto 100 percent of its assets in debt and money market market securities with a residual maturity of one business day. The scheme may invest up to 100 percent of its assets in derivatives. The minimum application amount will be Rs. 5,000 and the scheme will have no exit load.
Reliance Mutual Fund also filed draft offer documents with SEBI for an overnight fund on Tuesday (Nov. 20). Last week, ICICI Prudential launched an for its overnight fund. HDFC Overnight Fund, SBI Overnight Fund and UTI Overnight Fund have one-year returns of 6.13 percent, 6.20 percent and 5.66 percent, respectively. (As on Nov. 19, 2018)
NIFTY 1D Rate Index will be used as a benchmark for the IDFC Overnight Fund. This index uses CBLO (Collateralized Borrowing and Lending Obligation) overnight rate for the calculation of index values.
|Index Name||1-yr Returns (%)||5-yr Returns (%)|
|NIFTY 1D Rate Index||6.03||6.98|
*Returns data as on 31st October, 2018
The fund will be managed by Harshal Joshi, who also manages IDFC Cash Fund, IDFC Ultra Short Term Fund, IDFC Arbitrage Fund, IDFC Money Manager Fund. Among these schemes the highest performing ones are – IDFC Cash Fund with one year returns at 7.32 percent, IDFC Arbitrage Fund with one year returns at 7.05 percent. (As on Nov. 19, 2018)
Date: 20 NOV 2018