Shriram Overnight Fund - Direct Growth: Low-Risk Investment Solution for 2025

Investment Objective and Approach

Shriram Overnight Fund is an open ended debt scheme investing in overnight securities. A relatively Low Interest Rate Risk and relatively Low Credit Risk. The Shriram Overnight Fund Direct Growth is an open-ended debt mutual fund scheme that invests in a portfolio of overnight debt securities. The fund aims to provide investors with high liquidity and safety while generating returns that are slightly higher than the returns offered by bank fixed deposit

The scheme seeks to generate returns commensurate with low risk and providing high level of liquidity, through investments made in debt and money market instruments with overnight maturity. The fund follows a conservative investment approach focused on capital preservation and liquidity maintenance, making it suitable for investors seeking parking of surplus funds with better returns than savings accounts.

The fund primarily invests in overnight securities, which are debt instruments that mature within one day. This investment strategy ensures minimal interest rate risk and credit risk while providing high liquidity to investors. The overnight nature of the underlying securities means the fund can adapt quickly to changing interest rate scenarios.

Fund Managers

Deepak Ramaraju is the Current Fund Manager of Shriram Overnight Fund Direct Growth fund. Mr. Ramaraju has completed his B.E. (Chemical Engineering). Prior to joining Shriram Mutual Fund, he worked at Sea Funds Management India Pvt Ltd and with Sanlam Group of South Africa as a member of their global equity research team. He has also worked with GE India Technology Center as a researcher and co-inventor.

Mr. Ramaraju brings extensive experience in both research and fund management, having worked with international fund houses and technology companies. His technical background combined with financial expertise provides a solid foundation for managing the fund's conservative investment approach.

About the Fund House (AMC)

Shriram Mutual Funds are operated by Shriram asset Management Company, commenced its operations in the stock market on 5th December 1994. Shriram Credit Company Limited (SCCL) has a 68.67% controlling stake in the fund house, thereby regulating various stock market operations undertaken. SCCL is a subsidiary company of the Shriram conglomerate, responsible for investment patterns of Shriram Mutual Funds.

Origin of Shriram Mutual Fund was in the form of a trust and was duly registered under the Indian Trusts Act on 27th May 1994. SEBI registration was done on 21st November 1994, having a registration number MF/017/94/4.

Shriram Asset Management Company is part of the well-established Shriram Group, which has a strong presence in financial services including commercial vehicle financing, life insurance, general insurance, and stock broking. The group's extensive experience in financial services provides a robust foundation for the mutual fund operations.

Key Financial Numbers (as of December 29, 2024):

- The fund currently has an Asset Under Management(AUM) of ₹736 Cr and the Latest NAV as of 19 Jan 2025 is ₹11.66.

- The expense ratio of Shriram Overnight Fund - Direct Plan is 0.11.

- The fund has delivered a CAGR of 6.6 since inception.

- The Shriram Overnight Fund was launched on Aug 17 2022.

Should I Invest in Shriram Overnight Fund?

The Shriram Overnight Fund Direct Growth is a good option for investors who are looking for a liquid and safe investment that can generate returns that are slightly higher than the returns offered by bank fixed deposits. The fund is suitable for investors who have a low risk tolerance and who are looking for a relatively stable investment.

The fund is ideal for:

Conservative Investors: Those seeking capital preservation with marginally better returns than traditional savings options.

Short-term Parking: Investors looking to park surplus funds for short durations while maintaining high liquidity.

Emergency Fund Creation: Building an emergency corpus that provides easy access to funds when needed.

Risk-Averse Profile: Suitable for investors with low risk appetite who prioritize safety over high returns.

However, it is important to note that the fund is not a risk-free investment. The fund's returns can go down as well as up. Investors should only invest in the fund if they are comfortable with the risk of losing money.

Investment Details:

- Minimum SIP Investment is set to ₹1,000. Minimum Lumpsum Investment is ₹5,000.

- The fund has no entry load, and there is no exit load applicable for redemptions.

FAQs

What is today's NAV of Shriram Overnight Fund?

The NAV changes daily based on market conditions. Check the latest NAV on Allvest platform or the fund house website for real-time updates.

What is the AUM of Shriram Overnight Fund?

The fund currently has an Asset Under Management(AUM) of ₹736 Cr as of 19 Jan 2025.

What is the expense ratio of Shriram Overnight Fund?

The expense ratio of Shriram Overnight Fund - Direct Plan is 0.11, making it cost-effective for investors.

What are the returns of Shriram Overnight Fund since inception?

The fund has delivered a CAGR of 6.6 since inception from its launch in August 2022.

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

Minimum SIP Investment is set to ₹1,000.

How do I invest in Shriram Overnight Fund?

You can invest through Allvest platform by completing KYC, selecting the fund, choosing investment amount, and making payment via UPI or net banking.

How to start a SIP in Shriram Overnight Fund?

Login to Allvest, select Shriram Overnight Fund, choose SIP option, set amount and frequency, then authorize payment mandate for automatic investments.

How do I automate an SIP in Shriram Overnight Fund?

Set up auto-debit mandate during SIP registration on Allvest platform to ensure seamless monthly investments without manual intervention.

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

Access your portfolio on Allvest, select the fund, choose redemption amount, and funds will be credited to your registered bank account within 1-2 working days.