Why overnight funds are suitable for emergency funds? Here are 3 reasons
2 years ago

Why overnight funds are suitable for emergency funds? Here are 3 reasons

Live Mint  

Before asking where you should invest your emergency funds, the priority question should be whether you should invest it or not. One of the funds which is a highly liquid financial instrument is overnight funds in which you can invest your emergency funds. Here are 3 main reasons why overnight funds can be the best option for you even if you want to invest your emergency money. But, the riskiest aspect of debt funds, interest rate risk, gets reduced in the case of overnight funds as they mature every day. High rate of return You can earn a 3% to 5% annualised rate of return which is much better than the FD if you are looking forward to investing your emergency funds in the FD.

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History of this topic

Liquid funds have taken a hit, but don’t replace them with overnight funds
5 years, 9 months ago

Liquid funds have taken a hit, but don’t replace them with overnight funds

Live Mint  

Until recently, liquid funds were seen as an alternative to the savings bank account. Investors looking for an alternative to liquid funds now seem to have turned their attention to overnight funds that can give the security and liquidity of a savings bank account along with better returns. Risk and return Overnight funds cater to the need for a liquid …

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