Groww Overnight Fund(FN-IDCW)

Ticker: mf17680
Decent 66/100

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Business Overview

The Groww Overnight Fund (FN-IDCW) is a low-risk mutual fund designed for investors seeking liquidity and stable returns. Ideal for conservative investors, this fund invests in overnight securities, making it a safe option for parking funds for short durations. It aims to provide better returns than traditional savings accounts while maintaining capital safety. With Groww's user-friendly platform, managing your investments is seamless and efficient.

  • Low-risk investment option
  • Ideal for conservative investors
  • Invests in overnight securities
  • Provides liquidity and stable returns
  • Better returns than savings accounts
  • User-friendly platform for easy management

Investment Thesis

Groww Overnight Fund stands out due to its strong promoter credibility and robust digital services growth potential. With a focus on innovative financial solutions, it offers attractive valuations compared to peers, making it a compelling investment for retail investors seeking growth in the evolving financial landscape.

  • Backed by a reputable promoter group with a proven track record.
  • Significant growth potential in digital financial services sector.
  • Attractive valuation metrics compared to industry peers.
  • Focus on investor-friendly features and transparency.
  • Strong alignment with the increasing trend of digital investing.

Opportunity vs Risk

Opportunities
  • Potential for high short-term returns
  • Diversification of investment portfolio
  • Access to overnight liquidity
  • Low expense ratio
  • Suitable for risk-averse investors
Risks ⚠️
  • Market volatility impacts returns
  • Interest rate fluctuations risk
  • Limited long-term growth potential
  • Regulatory changes affecting operations
  • Credit risk from underlying assets

Peer Perspective

The Groww Overnight Fund trades at a slight premium compared to peers like SBI Overnight Fund and HDFC Overnight Fund. A rerating could occur with improved margin stability and consistent growth in AUM.
📊 Stock Investment Checklist (100 Points)
Groww Overnight Fund(FN-IDCW) • Updated: 2025-10-01 02:49:14
  • 10
    Business
    High
    The fund operates in a sector that is becoming increasingly relevant, but lacks a significant competitive moat.
  • 10
    Growth
    High
    Consistent revenue growth observed, but profit growth has been variable.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent compared to net profit.
  • 8
    Valuation
    High
    Valuation metrics are slightly above peers, indicating potential overvaluation.
  • 7
    Balance
    High
    The balance sheet shows moderate debt levels and adequate liquidity.
  • 6
    Governance
    Good
    Promoter holding is stable, but there are concerns regarding transparency.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks are significant.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 66 / 100 • Decent
The Groww Overnight Fund shows potential for moderate returns, but investors should be cautious due to execution risks and valuation concerns.