DID YOU KNOW about Overnight Mutual Funds?
Ever wondered where your employers or these big entrepreneurs keep their money?
Such people have 2 main requirements, at least for a part of their money- Liquidity and earning interest, as they don’t want to lose their money’s value overnight
So, what’s the option? An overnight fund.
It gives them returns of around 6-7% pa and also matures overnight. Because of such a short period, the risk is lowered, providing immense liquidity.
So probably when your employer needs to pay your salary, they would withdraw this overnight fund a day prior & release the salaries.
While anyone can invest in it, a small corpus may not prove to be profitable from taxation perspective as it’s taxed like debt funds.
Isn’t it interesting to make money overnight? Have you ever invested in such a fund? Let us know your experience in the comments section.
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