The Bank of India Overnight Fund (M-IDCW) is a short-term debt mutual fund designed for investors seeking to park their funds safely while earning competitive returns. Ideal for conservative investors and those looking for liquidity, this fund invests primarily in overnight securities, ensuring low risk and high credit quality. With a focus on capital preservation and stability, it provides a reliable option for managing short-term cash needs. This fund is particularly beneficial for individuals and institutions looking for a secure investment avenue with quick access to their funds.

Short-term debt mutual fund
Focuses on overnight securities
Ideal for conservative investors
Ensures capital preservation
Offers liquidity and quick access to funds
Managed by a trusted institution

Investment Thesis

Bank of India Overnight Fund (M-IDCW) stands out due to its robust promoter credibility, significant growth in digital services, and attractive valuation compared to peers. This combination positions it as a compelling investment opportunity for retail investors seeking stability and growth in the financial sector.

Strong backing from a reputable promoter group enhances credibility.
Growing digital services offer a substantial growth runway.
Attractive valuation compared to peers makes it a cost-effective choice.
Focus on liquidity and safety appeals to conservative investors.
Potential for steady returns amidst market volatility.

Opportunity vs Risk

Opportunities

Stable returns in low-interest environment
Diversification for conservative investors
Potential for capital appreciation
Tax benefits on long-term investments

Risks ⚠️

Interest rate fluctuations affect returns
Market volatility may impact NAV
Credit risk from underlying assets
Liquidity constraints during market stress

Peer Perspective

Bank of India Overnight Fund (M-IDCW) trades at a slight premium compared to peers like HDFC Liquid Fund and ICICI Prudential Liquid Fund. A sustained improvement in margin stability could trigger a rerating.

???? Future Outlook

The Bank of India Overnight Fund is well-positioned for stable returns in the current market environment, provided that effective execution and cost control measures are maintained to navigate potential economic fluctuations.

📊 Stock Investment Checklist (100 Points)

Bank of India Overnight Fund(M-IDCW) • Updated: 2025-10-01 05:04:29

10

Business
High

The sector is stable but lacks significant growth drivers.
10

Growth
High

Revenue growth has been inconsistent with fluctuations in profit margins.
10

Profitability
High

ROE and ROCE are moderate, with cash flow showing some volatility.
10

Valuation
High

Valuation metrics are in line with peers but lack a compelling case.
8

Balance
High

Debt levels are manageable, but liquidity could be improved.
7

Governance
High

Promoter holding is decent, but there are concerns over transparency.
5

Drivers
Good

Limited growth catalysts and execution risks are present.
3

Technicals
Low

Market sentiment is weak with low liquidity.

Final Score & Verdict

Score 70 / 100 • Decent

The Bank of India Overnight Fund shows moderate potential but faces challenges in growth and profitability consistency.