Zerodha Overnight Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Zerodha Overnight Fund Direct Growth Plan is an overnight-style liquid fund with a current NAV of ₹10.777 as of 10 Sep 2026 and scheme AUM of ₹94 Cr. Its 1-year, 3-year and 5-year returns are 5.14%, 0%, and 0%, and it carries a Low Risk tag.

Our view is that this fund fits conservative money parked for very short holding periods, but the recent return profile is still modest and much steadier than growth-oriented debt or equity funds. The portfolio is extremely compact, with almost all of the disclosed weight in cash-like settlement exposure and a Treasury Bill, so the return pattern remains anchored to overnight liquidity rather than market upside.

Quick facts

Particular	Details
NAV	₹10.777 as of 10 Sep 2026
AUM	₹94 Cr
Expense Ratio	0.08%
Launch Date	04 Apr 2025
Min SIP	₹100
Risk Category	Low Risk
Benchmark	Nifty 50
Fund Category	Liquid
Exit Load	No exit load
Fund Managers	Kedarnath Mirajkar

The fund is managed by Kedarnath Mirajkar.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.39%	-4.06%
3M	1.24%	1.37%
1Y	5.14%	-7.31%
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The recent pattern is stable rather than exciting. Over one month and three months, the fund has stayed close to a flat-to-slightly-positive path, which is consistent with an overnight strategy that aims to preserve capital and keep day-to-day movement limited.

The 1-year return stands out mainly because the benchmark has been weak over the same stretch. That comparison matters less as a sign of excess growth and more as a reminder that the fund has avoided the sharp swings seen in equity-linked markets. For a conservative parking option, that relative steadiness is often the main appeal.

The longer picture is still limited because the fund launched in April 2025, so 3-year and 5-year history are not available. That means we should read the 1-year number as a short operating record, not as a full cycle test. The available time pattern suggests a low-drift, low-volatility profile rather than a return-seeking one.

Against the benchmark, the fund has been ahead over 1 year and slightly behind over 3 months. The shorter-period comparison shows that its path is not uniformly strong every quarter, but the overall behaviour remains much more controlled than the benchmark’s wider fluctuations.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Zerodha Overnight?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Zerodha Overnight Fund Direct Growth Plan	5.14%	Data not available	Data not available
Bank of India Overnight Fund Direct Growth Plan	5.51%	6.22%	5.83%
360 ONE Overnight Fund Direct Growth Plan	5.32%	Data not available	Data not available
Baroda BNP Paribas Overnight Fund Direct Growth Plan	5.3%	6.09%	5.71%
Nippon India Overnight Fund Direct Growth Plan	5.3%	6.1%	5.73%
DSP Overnight Fund Direct Growth Plan	5.29%	6.08%	5.71%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the 1-year measure, the fund sits below all five peers listed here, but only by small margins in most cases. The gap is narrow enough that the main story is not underperformance in a dramatic sense; it is that the fund has delivered a slightly softer short-term outcome than the better-known overnight peers.

The longer-history peers with 3-year and 5-year figures have generally held a firmer return profile than this fund can currently show, but that is partly because this scheme does not yet have those longer records. So the comparison is mixed: the recent return is serviceable, while the available peer set with longer records looks more established on a history basis.

That creates two different readings. In the short term, the fund is reasonably close to the peer cluster, though not the strongest in the set. In the longer term, there is not enough history in this scheme to judge whether its pattern would match the peer group’s multi-year steadiness.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
Clearing Corporation of India Limited	Cash & Cash Equivalents and Net Assets	98.79%
364 Days Treasury Bill 10-Sep-2026	Treasury Bills	1.06%

The largest disclosed holding is Clearing Corporation of India Limited at 98.79%, which is an exceptionally dominant position and likely to drive almost all of the fund’s short-term behaviour. The only other disclosed position is a Treasury Bill at 1.06%, so the jump from the first holding to the second is very steep.

Because there are only two disclosed holdings, the portfolio does not have a long tail of many small positions. Instead, it is heavily concentrated in a settlement-style cash equivalent plus a small government paper exposure, which should keep the holding pattern very close to overnight liquidity management.

The top disclosed holdings account for 99.85% of the portfolio, so the visible exposure is almost fully explained by these two lines. That concentration can support stability, but it also means there is little diversification within the disclosed holdings set for return variation to come from.

Source data date: as of 10 Sep 2026

Who should invest

This fund suits investors who want low-risk parking for money that may be needed very soon and who value a stable path more than upside. The available return pattern is steady, but it is not a high-growth profile, and the benchmark comparison shows that outcomes can vary over short windows.

The main trade-off is between capital stability and return ambition. The fund’s very concentrated, cash-heavy structure supports liquidity-style use, yet the limited history means investors should treat it as a short-horizon holding rather than a fund to judge by multi-year compounding.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: No exit load.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of Zerodha Overnight Fund Direct Growth Plan?

The current NAV is ₹10.777 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The 1-year return is 5.14%. The 3-year and 5-year returns are Data not available because the scheme does not yet have those longer records.

How does the fund compare with its benchmark?

Over 1 year, the fund has outpaced the benchmark return of -7.31%. Over 3 months, it has been slightly below the benchmark’s 1.37% reading.

How does it compare with peer overnight funds?

Its 1-year return of 5.14% is a little below the peer figures shown here, while peers with longer records also show 3-year and 5-year returns in the 5.7% to 6.2% range where available.

What is the expense ratio and fund category?

The expense ratio is 0.08% and the fund sits in the Liquid category.

What is the exit load and who manages the fund?

There is no exit load. The fund is managed by Kedarnath Mirajkar.

Bottom line

Zerodha Overnight Fund Direct Growth Plan has a calm, low-risk profile and a very concentrated portfolio that is built for cash-like parking rather than aggressive return generation. Its recent return history is stable, and the 1-year figure has been better than the benchmark, but the scheme still lacks long record depth. Against comparable overnight funds, the short-term return is slightly softer. This makes it a reasonable fit for short-horizon investors who prioritise liquidity and steadiness over higher compounding.

Published on 11 September 2026 at 6:34 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.