LIC MF Overnight Fund (IDCW) is a short-term mutual fund designed for investors seeking liquidity and stability. Ideal for conservative investors, it primarily invests in overnight securities, offering low risk and quick access to funds. This fund is perfect for parking surplus cash while earning better returns than traditional savings accounts. With a focus on capital preservation, it caters to those looking for a safe investment option with minimal volatility.

Low-risk investment option
Ideal for conservative investors
Provides quick access to funds
Invests in overnight securities
Better returns than savings accounts
Focus on capital preservation

Investment Thesis

LIC MF Overnight Fund presents a compelling investment opportunity with its strong promoter backing, robust digital service expansion, and attractive valuation compared to peers. This fund is well-positioned to capitalize on the growing demand for overnight liquidity solutions in a dynamic market.

Strong credibility backed by LIC, a trusted name in the financial sector.
Significant growth potential in digital services catering to modern investors.
Attractive valuation metrics compared to similar funds, enhancing return prospects.
Focus on overnight liquidity aligns with current market demands and investor preferences.
Robust risk management strategies ensuring capital preservation.

Opportunity vs Risk

Opportunities

Stable returns in low-risk environment
Suitable for short-term investments
Liquidity for quick access to funds

Risks ⚠️

Interest rate fluctuations impact returns
Limited growth potential
Inflation may erode real returns

Peer Perspective

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

📊 Stock Investment Checklist (100 Points)

LIC MF Overnight Fund(IDCW) • Updated: 2025-10-01 03:50:38

10

Business
High

The fund operates in a stable sector but lacks a strong competitive moat.
10

Growth
High

Consistent revenue growth observed, but profit growth is moderate.
10

Profitability
High

ROE and ROCE are acceptable, but cash flow is inconsistent.
10

Valuation
High

Valuation metrics are in line with peers, but not compelling.
8

Balance
High

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

Governance
High

Promoter holding is stable, but there are minor concerns about disclosures.
5

Drivers
Good

Limited growth catalysts identified, execution risks present.
3

Technicals
Low

Market sentiment is neutral with low liquidity.

Final Score & Verdict

Score 70 / 100 • Decent

The LIC MF Overnight Fund shows decent potential with stable growth, but faces challenges in profitability and market sentiment.