SBI Overnight Fund(DD-IDCW)

Ticker: mf14203
Decent 68/100

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Business Overview

The SBI Overnight Fund (DD-IDCW) is a debt mutual fund designed for investors seeking short-term investment options with minimal risk. Ideal for conservative investors, this fund primarily invests in overnight securities, offering liquidity and stability. It serves as an excellent choice for parking funds temporarily while earning potential returns. With SBI's trusted reputation, this fund ensures a reliable investment avenue for individuals looking to manage cash flow effectively.

  • Invests primarily in overnight securities
  • Designed for short-term investment needs
  • Low-risk option for conservative investors
  • Offers liquidity and stability
  • Managed by SBI, a trusted financial institution
  • Ideal for parking funds temporarily

Investment Thesis

SBI Overnight Fund (DD-IDCW) stands out as a robust investment option due to its strong backing from the SBI Group, a trusted name in Indian finance. With the growing demand for digital services and an attractive valuation compared to peers, this fund offers a compelling opportunity for retail investors seeking stability and growth.

  • Strong promoter group: Backed by the reputable SBI Group, ensuring credibility and trust.
  • Digital services growth: Positioned to benefit from the increasing shift towards digital financial solutions.
  • Attractive valuation: Competitively priced compared to peer funds, offering potential for higher returns.
  • Focus on liquidity: Ideal for investors seeking short-term investment with minimal risk.
  • Stable returns: Historically consistent performance, appealing to conservative investors.

Opportunity vs Risk

Opportunities
  • Stable returns in uncertain markets
  • Low expense ratio benefits investors
  • Potential for capital appreciation
  • Liquidity for short-term needs
Risks ⚠️
  • Interest rate fluctuations impact returns
  • Market volatility may affect NAV
  • Limited growth compared to equities
  • Credit risk from underlying securities

Peer Perspective

SBI Overnight Fund trades at a slight premium compared to peers like HDFC Overnight Fund and ICICI Overnight Fund. A rerating could occur if the fund maintains consistent returns amidst rising interest rates.
📊 Stock Investment Checklist (100 Points)
SBI Overnight Fund(DD-IDCW) • Updated: 2025-10-01 07:16:11
  • 10
    Business
    High
    The fund operates in a stable sector but lacks a significant competitive moat.
  • 10
    Growth
    High
    Consistent revenue growth, but profit margins are under pressure.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow is inconsistent.
  • 8
    Valuation
    High
    Valuation metrics are in line with peers but show limited upside.
  • 7
    Balance
    High
    Strong liquidity but moderate debt levels.
  • 6
    Governance
    Good
    Promoter holding is stable, but disclosures could improve.
  • 5
    Drivers
    Good
    Limited growth catalysts and execution risks are present.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
The SBI Overnight Fund shows decent potential but faces challenges in profitability and growth drivers.