Advantages of Overnight Funds
Overnight Funds have benefits that make them attractive, to investors. One major advantage is their liquidity, which allows investors to access their funds whenever needed without any exit loads or penalties. These funds mainly invest in risk and short term instruments ensuring that your invested capital remains protected from market volatility. Here are some of the advantages of Overnight Funds:
1. Liquidity: One significant benefit of Overnight Funds is their liquidity, which means you can access your investment on any business day without worrying about facing exit loads or penalties.
2. Safety: These funds mainly invest in low risk, short term instruments to minimize the possibility of losing capital due, to market fluctuations.
3. Limited Exposure to Interest Rate Risk: Overnight Funds are less affected by interest rate changes compared to debt funds because they have a one day maturity.
4. Better Returns than Savings Accounts: They generally offer comparatively good returns, than what you would typically earn from traditional savings accounts.