i found there is option in console to Invest in ICICI Prudential Overnight Fund to earn more money than saving account, is there any risk in this? like some bad news comes overnight that i might loose some % overnight? If there is no risk or even if its risk i will loose only like 1% i might use this on my trading money which sleeping at night.
An Overnight Fund can only invest in securities with maturities up to 1 days. This means that there is no interest rate risk. Overnight funds predominantly invest only in an instrument called Triparty Repo (TREPS) through CCIL which acts as a counter party to all trades. Which means there is no default risk.
How TREPS works
We had done a webinar with Anil Ghelani from DSP MF and he talks at length about TREPS in it.
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