Overnight Fund is the safest among fixed-income funds. These funds invest in securities maturing in 1-day, so they don’t have any credit or interest risk. The risk of making a loss in them is near zero. Liquid Funds are also among the safest categories, as they can only invest in debt and money market securities with maturities of up to 91 days. This reduces the interest rate risk and credit risk that these funds can take.