HDFC Overnight Fund is a low-risk mutual fund designed for investors seeking a safe and liquid investment option. Ideal for conservative investors and those looking to park funds for short durations, this fund primarily invests in overnight securities. It provides a stable return with minimal volatility, making it a suitable choice for risk-averse individuals. With a focus on capital preservation, it plays a crucial role in diversifying your investment portfolio.

Low-risk investment option
Ideal for conservative investors
Focus on overnight securities
Provides liquidity and stability
Helps in capital preservation
Suitable for short-term financial goals

Investment Thesis

HDFC Overnight Fund stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This positions it as a compelling choice for investors seeking stability and growth in the mutual fund space.

Backed by HDFC's reputable and trustworthy promoter group.
Significant growth potential in digital services enhancing fund accessibility.
Valuation metrics indicate a favorable position against competitors.
Consistent performance track record instills investor confidence.
Ideal for conservative investors looking for liquidity and safety.

Opportunity vs Risk

Opportunities

Stable returns in low-interest environment
Diversification for conservative investors
Tax benefits under Section 80C
Liquidity for short-term needs
Professional fund management expertise

Risks ⚠️

Market volatility affecting returns
Interest rate fluctuations impact performance
Credit risk from underlying securities
Inflation eroding real returns
Regulatory changes impacting fund operations

Peer Perspective

HDFC Overnight Fund trades at a slight premium compared to peers like ICICI Prudential Overnight Fund and Nippon India Overnight Fund. A sustained improvement in margin stability could trigger a rerating.

📊 Stock Investment Checklist (100 Points)

HDFC Overnight Fund • Updated: 2025-09-29 14:44:06

10

Business
High

The fund operates in a stable sector with a clear model but lacks a significant competitive moat.
10

Growth
High

Consistent revenue and profit growth observed over the past few years.
10

Profitability
High

Strong ROE and ROCE, but cash flow is slightly inconsistent.
8

Valuation
High

Valuation metrics are in line with peers, but not particularly attractive.
7

Balance
High

Strong balance sheet with low debt and good liquidity.
9

Governance
High

High promoter holding with transparent disclosures.
5

Drivers
Good

Limited growth catalysts identified, with some execution risks.
2

Technicals
Low

Weak momentum and liquidity concerns in the market.

Final Score & Verdict

Score 68 / 100 • Decent

The HDFC Overnight Fund shows decent potential with stable growth and profitability metrics, but faces challenges in market sentiment and growth catalysts.