Navi Mutual Fund launches Navi Overnight Fund

Navi Mutual Fund has announced the launch of its overnight fund, an open-ended debt scheme that will invest in debt and money market securities with overnight maturity. These securities would mature the next day and the fund manager would use these proceeds to buy new securities that mature the following day. Overnight funds are considered one of the safest types of mutual funds, as they carry very minimal interest rate risk or credit risk.

The NFO for Navi Overnight Fund is open and it will close for subscription on July 14.

The fund has the lowest expense ratio in its category with a Total Expense Ratio of 0.045% under the direct plan. The minimum investment in the scheme starts at Rs 10.

The Navi Overnight Fund will also offer an insta-redemption feature. Investors can submit an instant redemption for a maximum of Rs 50,000 or 90% of the current investment value. Investors can easily redeem their investments without paying any exit load or penalty.

“With the Navi Overnight Fund, which is our second debt mutual fund offering, we are looking to provide low-cost investment avenues to our customers while expanding our debt offerings,” said Sachin Bansal, CEO of Navi Mutual Fund.

Investors can also park their surplus cash in Navi Overnight Fund and systematically transfer funds to other Navi schemes like Navi Nifty 50 Index Fund, Navi Nasdaq 100 Fund of Funds, etc. The fund is a good option for investors looking for a safe investment with very low fees.