Investment Objective and Approach

The primary objective of DSP Overnight Fund is to seek to generate returns commensurate with low risk and providing high level of liquidity, through investments made primarily in overnight securities having maturity of 1 business day. The fund invests in overnight instruments which includes but not limited to TREPs (Term Reverse Repo Transactions). Invested instruments primarily have a 1-day maturity.

The fund follows a conservative investment approach focusing on:

- Cash Management Strategy: Suitable as a cash management tool for investing surplus money.

- Risk Management: This is a safe debt fund with no interest rate risk and low credit risk.

- High Liquidity: Highly liquid with easy withdrawal of capital when needed (Up to Rs 50K instantly, the rest within just one business day).

- Asset Allocation: Prescribed asset allocation is 0% - 100% Debt Securities and Money Market Instruments with maturity up to 1 business day.

This fund is ideal for investors who want to park surplus funds temporarily while earning slightly better returns than savings accounts.

Fund Managers

Kedar Karnik is the current Fund Manager of DSP Overnight Fund Direct Growth fund. The fund is managed by a team of experienced professionals:

Kedar Karnik - Lead Fund Manager

- Holds MMS (Finance) degree and is a Chartered Financial Analyst.

- Previously worked at ICICI Bank, CRISIL, HSBC Global Asset Management and Axis Asset Management Company before joining DSP Mutual Fund.

Shalini Vasanta - Co-Manager

- Has total work experience of over 11 years and has been managing this fund since August 2024.

- Part of the fixed income team at DSP Asset Managers since 2017.

- Previously worked with ICRA Ltd. as a Credit Rating Analyst and holds MBA (Finance) from NMIMS, Mumbai and BA with Hons in Economics & Statistics from St. Xavier's College, Mumbai.

The fund management team brings extensive experience in debt securities and credit analysis, ensuring prudent investment decisions for the fund.

About the Fund House (AMC)

DSP Mutual Fund is among India's leading Asset Management Companies with a rich heritage dating back over a century. The DSP family's involvement in investments dates back to the 1860s when they initiated their journey in the stock-broking business.

Evolution and Growth:

- DSP Mutual Fund was established on May 13, 1996 as a Trust and received SEBI approval to commence mutual fund operations in December 1996.

- Initially formed DSP Merrill Lynch Asset Management Company in a joint venture with Merrill Lynch, later renamed to DSP BlackRock Investment Managers Ltd. in 2008 following BlackRock's global takeover.

- In 2018, the DSP Group reacquired BlackRock's 40% stake, rebranding the company as DSP Mutual Fund.

Current Position:

- As of 31 March 2024, DSP Mutual Fund has 372 schemes and an AuM of ₹1,48,063.36 Crores.

- Mr. Kalpen Parekh is the Managing Director & CEO of DSP Mutual Fund.

DSP Mutual Fund's long-standing presence and consistent performance across market cycles make it a trusted partner for investors seeking reliable mutual fund solutions.

Should I Invest in DSP Overnight Fund?

DSP Overnight Fund is suitable for specific investor profiles and financial objectives:

Ideal For:

- Investors seeking a safe parking space for surplus funds

- Those requiring high liquidity with minimal risk

- Those who want to park money for a very short period of time and may need to withdraw suddenly.

- Emergency fund allocation

- Money set aside to meet emergency needs or surplus money not needed for a few days up to a year.

Key Benefits:

- Low Risk Profile: Relatively low interest rate risk and relatively low credit risk.

- Instant Liquidity: Easy redemption with minimal exit restrictions

- Better than Savings Account: Delivers marginally higher returns than your bank account.

- No Lock-in Period: Open-ended structure allows entry and exit anytime

Limitations to Consider:

- While investing carries low risk, this also means you are likely to earn low returns.

- Not suitable to build wealth in the long run.

- Returns are modest compared to other debt categories

Financial Metrics (as of February 2025):

- AUM: ₹1,67,044 Cr as of 02 Feb 2025

- Expense Ratio: 0.06% for direct plan

- Minimum Investment: ₹100 for both SIP and lumpsum

- Returns: CAGR of 5.11% since inception

This fund works best as a tactical allocation for temporary cash parking rather than a core portfolio component for long-term wealth creation.

FAQs

What is today's NAV of DSP Overnight Fund?

The latest NAV of DSP Overnight Fund Direct Growth is ₹1,354.41 as of 02 Feb 2025. NAV is updated daily and reflects the fund's per-unit value.

What is the AUM of DSP Overnight Fund?

The fund currently has an Asset Under Management (AUM) of ₹1,67,044 Cr as of 02 Feb 2025. The large AUM indicates strong investor confidence in the fund.

What is the expense ratio of DSP Overnight Fund?

The expense ratio of DSP Overnight Fund direct plan is 0.06%, which is quite competitive for overnight funds and helps maximize investor returns.

What are the returns of DSP Overnight Fund since inception?

The fund has delivered a CAGR of 5.11% since inception. Recent performance shows 6.71% returns in the last 1 year and 19.57% in the last 3 years.

What is the minimum SIP amount to invest in DSP Overnight Fund?

The minimum SIP investment is set to ₹100. This low minimum makes it accessible for small investors to start systematic investing.

How do I invest in DSP Overnight Fund?

You can invest through Allvest platform, which offers a simple online investment process. Alternatively, you can invest through the DSP website, distributor networks, or other investment platforms after completing KYC requirements.

How to start a SIP in DSP Overnight Fund?

Log into your Allvest account, search for DSP Overnight Fund, select the SIP option, choose your monthly amount (minimum ₹100), set the date, and authorize the auto-debit mandate for seamless monthly investments.

How do I automate an SIP in DSP Overnight Fund?

After setting up your SIP through Allvest, provide bank mandate authorization for auto-debit. The platform will automatically deduct the SIP amount monthly and invest in the fund, ensuring discipline in your investment approach.

How can I withdraw/redeem my investment in DSP Overnight Fund?

You can redeem your investment through Allvest by selecting the fund and choosing partial or full redemption. The fund offers high liquidity with up to Rs 50K available instantly and the rest within one business day.