Overnight funds are open-ended debt mutual fund schemes, according to the Sebi concept, investing in overnight securities with a one-day maturity. It means that in these systems, the fund manager purchases shares on a daily basis. These bonds mature in a day and all the money is invested when new securities are bought.All strategies were made extremely liquid by this investment law. Overnight funds are perceived to be the lowest of the types of debt mutual funds. This is because these strategies are not influenced by interest rate changes and debt defaults because of their very short investment horizon. That's why many investment experts say these schemes are perfect for anyone who wants to park money with a little extra return with the least amount of risk.