Launching Instant Redemption on the Zerodha Overnight Fund
Overnight funds have been traditionally viewed as a place for parking surplus cash while maintaining a low-risk profile. These funds manage short-term liquidity by investing in instruments with overnight maturity. However, a primary concern for many investors has always been: "What if I need my money right now?"
To address this, we at Zerodha Fund House have launched the Instant Access Facility (IAF) for the Zerodha Overnight Fund.
What is Instant Withdrawal/Redemption?
Normally, redeeming from a mutual fund takes at least one working day (T+1) for the money to be credited to your bank account. Instant Redemption changes this by allowing you to withdraw your money and have it credited to your linked bank account almost instantly, 24x7x365 - even on weekends and bank holidays.
Key Details of the Facility
This facility is designed for speed and convenience for resident individual investors:
- Speed: Funds are typically credited via IMPS within a few minutes of your request.
- Daily Limits: You can instantly withdraw up to ₹50,000 or 90% of your current investment value per day, whichever is lower.
- Availability: The service is available 24/7, including public holidays.
- No Extra Cost: There are no additional charges for using this instant redemption feature.
- Eligibility: Only available for units held in non-demat mode, which are non pledged/locked etc.
Experience Instant Liquidity on Zerodha Fund House’s WhatsApp facility
We have integrated this facility directly into our WhatsApp flow to make the process as seamless as possible. Once invested in the fund:
- Navigate to the "24x7 Instant Withdrawal" option.
- Specify the amount.
- Redeem your funds.
Click here to try the Instant Redemption journey on WhatsApp
Our goal is to provide an efficient investment avenue for your surplus funds through the Zerodha Overnight Fund, now enhanced with the Instant Access Facility for quick liquidity, subject to applicable daily limits.
About the fund
The Zerodha Overnight Fund is a low-risk mutual fund designed to invest primarily in government-backed securities with a 1-day maturity, aiming to provide an efficient way to manage short-term funds with a relatively low interest rate and credit risk.
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Published on Jan 13th, 2026