Investment Objective and Approach

The investment objective of the Scheme is to generate returns commensurate with low risk and providing high level of liquidity, through investments made in debt and money market securities having maturity of 1 business day including TREPS (Tri-Party Repo). It invests primarily in government-backed securities with a 1-day maturity, aiming to provide an efficient way to manage short-term funds with a relatively low interest rate and credit risk.

With no lock-in period and no exit load, this fund may be suitable for risk-averse investors looking to park idle funds or set aside money for emergencies. It can also act as a short-term investment option in one's portfolio, potentially balancing risk during market fluctuations.

Key features of the fund approach:

- Invests in overnight maturity securities (1 business day)

- Overnight funds are debt funds. They invest in debt securities with overnight maturities. These funds are the most liquid investment securities with the minimum exposure to risk.

- This is an ideal fund for anyone looking at parking funds for a short term duration. By short term, I mean for less than three months. Remember, if you want to park funds for more than three months or 90 days, you are better off looking at a liquid fund.

- As of today, overnight funds yield around 4-5% annualized

Fund Managers

Kedarnath Mirajkar is the Current Fund Manager of Zerodha Overnight Fund Direct Growth fund. Prior to joining Zerodha Mutual Fund, he has worked with ABSL AMC, HDFC Bank as a Deupty Manager, Bombay Dyeing as a Finance Executive. He has over 10 years of experience in the Mutual Fund Industry. Kedarnath Mirajkar is the Fund Manager - Equity at Zerodha Asset Management Pvt. Ltd. He holds a PGDBM in Finance from Wigan & Leigh, where he studied from 2003 to 2005.

Additional details about his experience:

- Kedar has an experience of 19 years in financial markets, across multiple roles at Aditya Birla Sunlife AMC Ltd (ABSLAMC), including fund management for passive products, where he managed 13 ETFs and Index Funds in equity & commodity.

About the Fund House (AMC)

In October 2023, Zerodha launched Zerodha Fund House, an asset management company, in partnership with Smallcase. Zerodha Asset Management Private Limited, or ZAMPL, is a private limited Indian Non-Government company. The company was established in the year 2021. The registered office of this growing AMC is set up in Bangalore, Karnataka, India.

This company is exclusively concentrated on building passive investment products. The major focus of Zerodha is based on creating index funds and ETFs that are constructed to be simple to invest in and transparent to all investors. They adopt a technology-first approach in order to develop funds that cater to every type of investor.

Key highlights about Zerodha Fund House:

- It focused on index funds and had only direct plans which paid no commissions to distributors. In March 2024, the fund house had an AUM of ₹10 billion (US$120 million).

- At Zerodha Fund House, we've set out to build not just another AMC, but an ecosystem that genuinely makes investing accessible to everyone. For too long, the world of mutual funds and capital markets has felt out of reach for the average Indian investor. We wanted to change that. We're using the best of technology and product design to build transparent, cost-efficient, index-based funds that are easy to understand—and open to all.

- When we launched in late 2023, we began with a clear conviction: that index-based investing is the most efficient, transparent way to participate in markets. You don't need to predict which fund manager will outperform, or try to time the market. You just need to stay consistent, diversified, and patient. We started with our first Index Fund, and slowly began expanding the offering designed for a long-term investor's portfolio.

Parent Company Background:

- Zerodha was founded and bootstrapped by brothers Nithin and Nikhil Kamath. As of May 2024, it has 7.5 million active customers registered with the NSE, making it the second largest stockbroker in India.

- Zerodha was founded in August 2010 by brothers Nithin and Nikhil Kamath. The name Zerodha, indicates a combination of words for the company's ideals: zero and rodha, the Sanskrit word for 'barrier'.

Should I Invest in Zerodha Overnight Fund?

This fund is suitable for specific investor profiles and financial situations:

Ideal for:

- Investors looking to park surplus funds for very short durations (less than 3 months)

- Risk-averse investors who prioritize capital preservation over high returns

- Emergency fund parking with better returns than savings accounts

- Portfolio diversification with a low-risk debt component

- Temporary parking of funds before investing in other assets

Key Considerations:

- Overnight funds invest in bonds having a maturity of just one day. They are suitable to earn a little extra on idle money lying in the bank. You may invest in these funds the money that you have set aside to meet any emergency needs or any surplus money that you don't need for a few days up to a year. The risk of incurring a loss in these funds is negligible but they do not guarantee returns or safety of capital. Remember, these funds are geared to deliver only marginally higher returns than your bank account.

Financial Details (as of August 25, 2025):

- The fund currently has an Asset Under Management(AUM) of ₹6,657 Cr and the Latest NAV as of 25 Aug 2025 is ₹10.23.

- NAV · ₹10.2265 · Expense Ratio · 0.08% Exit Load · 0% Tracking Error · N/A · Lock-in Period · No

- Zerodha Overnight Fund Direct Growth has given a CAGR return of 1.38% since inception.

- Minimum SIP Investment is set to ₹100. Minimum Lumpsum Investment is ₹100.

Tax Implications:

- All gains/profits from the units of the Overnight Fund, irrespective of the holding period, will be considered as Short Term Capital Gains (STCG) and will be taxed as per the tax slab of the investor (plus 4% cess and surcharge, if any).

FAQs

What is today's NAV of Zerodha Overnight Fund?

The current NAV of Zerodha Overnight Fund is ₹10.23, as of 25th August 2025.

What is the AUM of Zerodha Overnight Fund?

The AUM (i.e. assets under management) of Zerodha Overnight Fund is ₹68.54 Cr as of 25th August 2025.

What is the expense ratio of Zerodha Overnight Fund?

The expense ratio of Zerodha Overnight Fund Plan is 0.08 as of 25th August 2025.

What are the returns of Zerodha Overnight Fund since inception?

Zerodha Overnight Fund Direct - Growth scheme return performance is 2.27% since scheme launch.

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

The minimum SIP amount is ₹100, making it accessible for investors with modest investment amounts.

How do I invest in Zerodha Overnight Fund?

You can invest through Allvest platform by completing your KYC, selecting the fund, choosing between SIP or lump sum investment, and setting up payment methods.

How to start a SIP in Zerodha Overnight Fund?

Through Allvest, log in to your account, search for the fund, select SIP option, enter your preferred amount and date, and set up the payment mandate.

How do I automate an SIP in Zerodha Overnight Fund?

Set up an e-mandate or UPI autopay through Allvest platform during the SIP setup process for automatic monthly deductions.

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

You can redeem your investment through Allvest by placing a redemption request, with proceeds typically credited to your bank account within 1-2 business days as it's a liquid debt fund.