#NFO #360ONEAssetOvernightFund #360ONEAssetShortTermSurplus #360ONEAssetOvernightNFO
NFO Open from July 1 to July 9, 2025 | Minimum Investment: ₹5,000
Chandigarh, July 1, 2025 – In a move to cater to investors seeking safe and liquid avenues for short-term capital deployment, 360 ONE Asset Management Limited (formerly IIFL Asset Management) has announced the launch of the 360 ONE Overnight Fund, an open-ended debt scheme investing exclusively in overnight securities.
With the New Fund Offer (NFO) open from July 1 to July 9, 2025, this product is structured as a relatively low-risk, high-liquidity investment option, ideal for individuals, institutions, and corporates looking to park funds for very short durations. The fund will be open for continuous sale and repurchase from July 14, 2025, offering daily liquidity with no exit load, enhancing its appeal as a flexible parking tool.
A Growing Demand for Overnight Funds in Volatile Times
In the current market environment, where interest rate fluctuations and short-term uncertainties can challenge investors seeking safety, overnight funds have emerged as a preferred choice for short-term deployment. These funds invest in debt and money market instruments with maturities of just one day, which significantly reduces both credit risk and interest rate sensitivity.
Raghav Iyengar, CEO, 360 ONE Asset, explained the rationale behind launching the fund:
“We continue to build solutions that are precise and purposeful, and the 360 ONE Overnight Fund reflects that vision. It is structured to meet the short-term financial needs of investors by offering a product that is simple, liquid, and conservative in nature. Whether you are a corporate treasurer, HNI, or retail investor, this fund offers a reliable vehicle to temporarily deploy funds with minimal risk.”
Key Features and Investment Strategy
The 360 ONE Overnight Fund is designed with capital preservation and liquidity at its core. It aims to generate returns in line with overnight rates, making it suitable for investors with investment horizons ranging from a single day to a few weeks.
The fund will primarily invest in:
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Treasury Bills (T-Bills)
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Tri-Party Repos (TREPs)
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Reverse Repos
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Certificates of Deposit (CDs)
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Commercial Papers (CPs) – all maturing within one business day
These instruments are carefully selected to ensure minimal credit exposure, and the daily reinvestment cycle helps the fund maintain a stable Net Asset Value (NAV), making it a preferred option for conservative investors.
Milan Mody, Fund Manager – Fixed Income at 360 ONE Asset, added:
“The 360 ONE Overnight Fund is structured to handle short-term money needs efficiently. It will focus on instruments with the highest credit quality and shortest maturity, enabling the fund to offer high liquidity while minimizing risk. The design ensures smooth fund management with daily reinvestment of matured assets, making it an ideal choice for both retail and institutional clients.”
Investor Suitability and Use Cases
The fund is crafted to serve a diverse range of investors, including:
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Retail investors looking for a safe and flexible short-term investment avenue
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High Net-Worth Individuals (HNIs) managing cash flows between investments
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Corporates and institutions seeking a secure place to park idle funds overnight or over weekends
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Transitional investors who are waiting to deploy capital into long-term investment strategies
Additionally, the fund is suitable for systematic transfer plans (STPs), acting as a temporary destination for funds before being transferred into higher-risk or equity-oriented schemes.
Highlights of the 360 ONE Overnight Fund
| Feature | Description |
|---|---|
| Fund Category | Open-ended debt scheme – Overnight Fund |
| Risk Profile | Relatively low – minimal credit and interest rate risk |
| Minimum Investment | ₹5,000 (and in multiples of Re. 1 thereafter) |
| Exit Load | Nil – Full flexibility for redemptions |
| Instruments | T-Bills, TREPs, Reverse Repos, CDs, CPs with overnight maturity |
| Ideal For | Conservative investors, corporates, HNIs, cash flow managers |
| Reopens for Daily Transactions | July 14, 2025 |
Market Relevance and Outlook
The launch comes at a time when short-term interest rates remain volatile and the demand for low-risk investment products is rising. In India’s growing mutual fund industry, overnight funds have seen increased traction, particularly from corporate treasuries and HNIs, who seek efficient management of surplus liquidity without compromising on safety or flexibility.
By offering this new product, 360 ONE Asset, one of India’s leading alternative and mainstream asset managers, strengthens its suite of debt products and reinforces its reputation for tailored investment solutions aligned with client needs and evolving market conditions.
For investors looking for a liquid, low-volatility investment with predictable returns, the 360 ONE Overnight Fund presents a compelling option, with the added trust and expertise of a respected fund house.
