DSP Overnight Fund(DD-IDCW)

Ticker: mf15640
Risky 48/100

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Business Overview

DSP Overnight Fund (DD-IDCW) is a debt mutual fund designed for conservative investors seeking safety and liquidity. It invests primarily in overnight securities, making it ideal for those looking to park their funds for short durations while earning better returns than traditional savings accounts. This fund is suitable for risk-averse investors who want to maintain capital while enjoying potential growth.

  • Invests in low-risk overnight securities
  • Ideal for short-term capital preservation
  • Offers better returns than savings accounts
  • Highly liquid, allowing easy access to funds
  • Managed by experienced professionals
  • Suitable for conservative investors

Investment Thesis

DSP Overnight Fund (DD-IDCW) stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This fund is well-positioned to benefit from the increasing demand for liquidity management solutions in a digital-first economy.

  • Strong backing from DSP Group, known for its financial expertise.
  • Significant growth potential in digital services as businesses shift online.
  • Attractive valuation metrics compared to other funds in the category.
  • Focus on capital preservation while providing liquidity to investors.
  • Ideal for conservative investors seeking stable returns in a volatile market.

Opportunity vs Risk

Opportunities
  • Stable returns through debt instruments
  • Potential for capital appreciation
  • Diversification in investment portfolio
  • Tax benefits on long-term investment
Risks ⚠️
  • Interest rate fluctuations
  • Credit risk of underlying assets
  • Market volatility impact
  • Liquidity concerns in redemption

Peer Perspective

DSP Overnight Fund is currently trading at a slight premium compared to peers like HDFC Overnight Fund and ICICI Overnight Fund. A potential rerating could occur if it achieves consistent margin stability amidst rising interest rates.
📊 Stock Investment Checklist (100 Points)
DSP Overnight Fund(DD-IDCW) • Updated: 2025-10-01 02:01:08
  • 10
    Business
    High
    The sector is stable but lacks significant growth potential.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 8
    Profitability
    High
    ROE and ROCE are below industry averages, indicating weaker profitability.
  • 9
    Valuation
    High
    Valuation metrics are average compared to peers.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is stable, but there are minor concerns about disclosures.
  • 5
    Drivers
    Good
    Limited growth drivers and potential execution risks.
  • 1
    Technicals
    Low
    Market sentiment is weak with low liquidity.
Final Score & Verdict
Score 48 / 100 • Risky
The DSP Overnight Fund shows several weaknesses in growth and profitability metrics, indicating a risky investment at this time.