BANK OF INDIA OVERNIGHT FUND - Direct Plan - Growth

Constituent Forensic Metrics & Solvency Look-Through

⚡ Forensic Desk 🔄 Re-Audit Look-Through

Audit in Desk ↗

Audit in Desk ↗

Audit in Desk ↗

Audit in Desk ↗

Identifier	Security Name	Type	Weight	Sector / Rating	Engine Score	Diagnostic Notes
TREPS	Tri-Party Repo (TREPS) & Cash Margin	CASH_EQUIVALENT	15.0%	CASH	100.0	Liquid Cash / Sovereign Collateral
HDFCBANK ↗	HDFCBANK Ltd	EQUITY	14.17%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
RELIANCE ↗	RELIANCE Ltd	EQUITY	12.17%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
ICICIBANK ↗	ICICIBANK Ltd	EQUITY	9.81%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
INFY ↗	INFY Ltd	EQUITY	7.26%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
TCS ↗	TCS Ltd	EQUITY	5.09%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
ITC ↗	ITC Ltd	EQUITY	4.9%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
LT ↗	LT Ltd	EQUITY	4.72%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
BHARTIARTL ↗	BHARTIARTL Ltd	EQUITY	4.54%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
AXISBANK ↗	AXISBANK Ltd	EQUITY	4.0%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
SBIN ↗	SBIN Ltd	EQUITY	3.81%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
BAJFINANCE ↗	BAJFINANCE Ltd	EQUITY	3.45%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
KOTAKBANK ↗	KOTAKBANK Ltd	EQUITY	3.09%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
HINDUNILVR ↗	HINDUNILVR Ltd	EQUITY	2.91%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
M&M ↗	M&M Ltd	EQUITY	2.72%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available
MARUTI ↗	MARUTI Ltd	EQUITY	2.36%	Diversified Core Equity	82.0	Verified 7-Pillar Equity Dossier Available

Moderate Active Share: Meaningful benchmark overlap, blended active/passive posture.

Time Horizon	Direct Plan Value (Net)	Regular Plan Value (Net)	Cumulative Wealth Lost	Percentage Corpus Destroyed
5 Years	₹1,731,095	₹1,696,474	-₹34,621	2.0%
10 Years	₹2,996,691	₹2,878,026	-₹118,665	4.0%
15 Years	₹5,187,557	₹4,882,497	-₹305,060	5.9%
20 Years	₹8,980,156	₹8,283,032	-₹697,124	7.8%

Audited: 2026-10-11 08:18

# INSTITUTIONAL FORENSIC DOSSIER: BANK OF INDIA OVERNIGHT FUND - Direct Plan - Growth ## 1. Mandate Integrity vs Ground Reality (Active Share & Style Drift) The Bank of India Overnight Fund operates within the strict regulatory mandate of an overnight debt category, theoretically investing in collateralized lending obligations (CBLO/TREPS), reverse repos, and cash equivalents with a maturity of one day. However, the portfolio metadata reports an **Active Share of 65.0%** and an equity-style listing of compounders (HDFCBANK, RELIANCE, ICICIBANK, INFY, TCS) alongside a portfolio margin of safety. This presents a fundamental taxonomy contradiction: either the reported metrics reflect a systemic database attribution error regarding asset class mapping, or the scheme exhibits severe style drift away from overnight sovereign-backed money market instruments into equity/hybrid territory. An Active Share of 65.0% in a true overnight debt fund is structurally impossible unless the fund is utilizing synthetic overlays or derivatives to mimic equity beta, or the metadata mixes asset classes. Given an **AUM of ₹0 Cr**, the fund is effectively non-operational or unseeded. Consequently, AUM capacity drag is infinite/undefined, precluding normal operational execution. At ₹0 Cr AUM, fixed operational expenses cannot be amortized across a viable asset base, creating an unsustainable cost structure if scaled without proportional capital inflows. --- ## 2. Forensic Solvency & Accounting Fragility (ASRI Analysis) The **Accounting & Solvency Risk Index (ASRI)** is reported at **0.0% of the portfolio**, paired with **0.0% promoter pledging** and **no top forensic risks or leveraged holdings detected**. From a forensic accounting standpoint, a true overnight debt mandate backed entirely by TREPS (Tri-Party Repo Dealing System) and collateralized by sovereign paper inherently carries a zero ASRI score due to the absence of corporate credit risk, duration risk, and off-balance-sheet leverage. However, the presence of equity-oriented metadata ("Top Economic Moat Compounders") introduces a contradiction. If this scheme holds equities, a 0.0% ASRI is historically anomalous and points to a lack of granular forensic coverage rather than pristine financial statements. In standard equity portfolios, zero ASRI implies zero earnings manipulation (Beneish M-Score below threshold), zero accrual anomalies, and pristine cash-flow conversion. Because the underlying portfolio construction is masked by contradictory asset class inputs (debt category vs. equity compounders), solvency validation is deferred pending asset-level verification. --- ## 3. Economic Moat & Intrinsic Margin of Safety (DCF Capital Moat) The portfolio displays a **Weighted Economic Moat Index of 92.0/100**, anchored by high-quality large-cap compounders: **HDFCBANK Ltd, RELIANCE Ltd, ICICIBANK Ltd, INFY Ltd, and TCS Ltd**. The **Portfolio Margin of Safety vs Intrinsic DCF stands at 9.4%**. An aggregate margin of safety of 9.4% across a basket of Tier-1 Indian compounders indicates a fully valued-to-froth pricing regime. In institutional DCF modeling, a single-digit margin of safety provides negligible downside protection against macroeconomic shocks, cost of capital expansion (rising discount rates), or cyclical earnings downgrades. While businesses like HDFC Bank, ICICI Bank, TCS, Infosys, and Reliance possess wide structural moats (switching costs, network effects, efficient scale), buying them at a 9.4% discount to intrinsic value leaves portfolios vulnerable to multiple contraction. This valuation buffer is insufficient to absorb structural revisions in terminal growth rates or persistent inflation. --- ## 4. Manager Fee Justification vs Passive Index Drag * **Direct Plan TER:** 0.40% * **Regular Plan TER:** 0.85% * **Commission Spread (Alpha Leakage):** 0.45% (45 basis points) For an overnight instrument—where yields are pegged directly to the RBI’s Standing Deposit Facility (SDF) or Repo rate with near-zero duration risk—a Total Expense Ratio of 0.40% (Direct) and 0.85% (Regular) is exceptionally high. Overnight yields are structurally thin; gross yields must absorb these management fees, frequently driving net investor returns close to or below the friction threshold during low-interest-rate cycles. **15-Year Horizon Compounding Impact of the 0.45% Spread:** Assuming a nominal pre-fee yield of 6.50% compounded annually on a ₹10,00,000 allocation: * **Direct Plan (Net 6.10%):** Terminal value $\approx$ ₹24,53,150 * **Regular Plan (Net 5.65%):** Terminal value $\approx$ ₹22,96,480 * **Cumulative Wealth Tax (Distributor Drag):** $\approx$ ₹1,56,670 (or ~15.7% of initial capital lost to fee divergence). In a zero-duration asset class, paying a 45 bps annual toll for distribution services destroys the risk-free compounding logic of cash management. The Regular plan fee structure is mathematically punitive relative to the asset class's gross return ceiling. --- ## 5. Pre-Mortem Scenario: What Breaks in a Severe Market Stress Test? Assuming the portfolio contains the listed equity compounders or credit instruments while masquerading as an overnight fund, a **30% liquidity contraction** triggers the following structural failure sequence: 1. **Redemption-Liquidity Mismatch (Denominator Collapse):** At ₹0 Cr AUM, any institutional redemption request of even modest size creates an immediate gating event. If scaled up with the listed equity compounders, a 30% sudden redemption shock forces distressed sales of large-cap holdings. 2. **Impact Cost Realization:** While HDFCBANK, RELIANCE, ICICIBANK, INFY, and TCS boast deep daily trading volumes, systemic liquidity freezes (analogous to March 2020 or the 2008 GFC) cause bid-ask spreads to widen exponentially. Forced liquidation of these compounders during a liquidity crunch incurs severe market impact costs, eroding the already thin 9.4% DCF margin of safety. 3. **Collateral Valuation Failure:** If the fund holds short-term debt instruments (true overnight mandate) and counterparty liquidity dries up in the tri-party repo market due to systemic banking contagion, the fund faces settlement gridlock. Overnight funds rely on instantaneous liquidity recycling; any friction in the clearing corporation mechanisms stops cash inflows, exposing the vehicle to immediate NAV markdowns.