Bank of India Overnight Fund Direct Growth Review: NAV, Returns & Portfolio

Bank of India Overnight Fund Direct Growth is a debt mutual fund scheme that invests in overnight securities, typically with a maturity of one day. This makes it one of the lowest-risk categories in the Indian mutual fund space, suitable for parking surplus cash for very short periods. The fund is managed by Bank of India Investment Managers Private Limited. In this review, we look at its NAV, returns, portfolio, and whether it deserves a place in your portfolio in September 2026.

The scheme's direct plan has a lower expense ratio compared to the regular plan, which can translate into higher returns over time. The fund's portfolio generally comprises treasury bills, commercial papers, certificates of deposit, and other money market instruments with residual maturity of up to one day. According to analysts, overnight funds are ideal for investors seeking liquidity and capital preservation rather than high growth. The Bank of India Overnight Fund Direct Growth aims to provide reasonable returns with low risk and high liquidity.

As of September 2026, the fund's NAV stands at ₹1000.00 (hypothetical example, actual NAV may vary). The fund has delivered a 1-year return of 6.50%, a 3-year annualised return of 6.20%, and a 5-year annualised return of 6.00% (hypothetical figures for illustration). These returns are in line with the category average for overnight funds. The fund's expense ratio for the direct plan is 0.10%, which is competitive. The minimum investment amount is ₹500, and there is no exit load for redemptions after one day. The fund's AUM is ₹1000 crore (hypothetical).

The portfolio of Bank of India Overnight Fund Direct Growth is dominated by instruments such as TREPS (Tri-Party Repo), treasury bills, and commercial papers. As of the latest disclosure, the fund holds 40% in TREPS, 30% in treasury bills, 20% in commercial papers, and 10% in certificates of deposit (hypothetical allocation). This diversification ensures liquidity and minimal credit risk. Analysts say that overnight funds are not meant for long-term wealth creation but for temporary cash management. Investors with a horizon of a few days to a few weeks can consider this fund.

Analysts say that overnight funds are suitable for investors who want to park their surplus funds for a very short duration, typically less than a week, and are looking for better returns than a savings bank account.

When deciding whether to invest in Bank of India Overnight Fund Direct Growth, consider your financial goals. If you have idle cash that you may need in the next few days, this fund can be a good option. However, if you are looking for higher returns over a longer period, you may want to explore other debt or equity funds. The fund's direct plan is suitable for investors who understand the product and have a low-risk appetite. Always consult a financial advisor before investing. The fund's performance is subject to market risks, and past performance is not indicative of future results.

In conclusion, Bank of India Overnight Fund Direct Growth is a low-risk, liquid option for short-term parking of funds. Its direct plan offers a lower expense ratio, which can enhance returns slightly. However, returns are modest, and it is not a substitute for long-term investments. For more details, visit markettomoney.co.in.