# Launching Instant Redemption on the Zerodha Overnight Fund
**URL:** https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347
**Category:** General
**Created:** [January 12, 2026, 4:56am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347 "2026-01-12T04:56:08Z")
**Posts on this page:** 17
**Page:** 1
### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [January 12, 2026, 4:56am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/1 "2026-01-12T04:56:08Z")
Hi everyone,
We’ve always looked at the Zerodha Overnight Fund as a place for you to park your surplus funds while maintaining a low risk profile. However, a common piece of feedback we’ve received is about liquidity: “What if I need my money right now?”
I’m happy to announce that we have launched the Instant Access Facility (IAF) on the Zerodha Overnight Fund.
**What is Instant 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. With this instant withdrawal facility, you can now withdraw your money and have it credited to your linked bank account instantly, 24x7x365 - even on weekends and bank holidays.
**The Key Details:**
- Speed: Funds are typically credited via IMPS within a few minutes.
- Limits: You can withdraw up to ₹50,000 or 90% of your current investment value per day, whichever is lower.
- Availability: This facility is available 24x7, including holidays.
- No Extra Cost: There are no additional charges for using the instant redemption facility.
- Eligibility: Only available for units held in **non-demat** mode, which are unencumbered (i.e non pledged / locked etc.) This is currently available for resident individual investors only.
**How to use it?**
We have integrated this facility directly into our WhatsApp flow for a seamless experience.
- Once invested, navigate to the “24x7 Instant Withdrawal” option
- Specify the amount
- Redeem your funds
- Try it out[here](https://wa.me/919845335486)
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.
We’d love for you to try this out. If you have any questions about how this works or the limits applicable, please ask them below. I’ll be happy to answer!
Best,
Vishal
_The Information provided is for general knowledge and informational purposes only and does not constitute financial advice by any means whatsoever._
_Investing in mutual funds and other financial products involves risk, including the potential loss of principal. Past performance is not indicative of future results. Before making any investment decisions, investors should conduct their own research and seek advice from qualified financial advisors to ensure that the respective products and strategies are suitable for their specific financial situation and objectives._
_Investors are advised to read the Scheme Information Document (SID), Statement of Additional Information (SAI), Key Information Memorandum (KIM), and other scheme related documents carefully._
_[Link of T&C of IAF](https://assets.zerodhafundhouse.com/terms/terms/Terms%20and%20Condition%20for%20Digital%20Media%20%E2%80%93%20Zerodha%20Mutual%20Fund.pdf)_
_[Link to SID](https://assets.zerodhafundhouse.com/offer-documents/sid/Zerodha%20Overnight%20Fund%20-%20SID.pdf)_
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### Author:  [@amitskale](https://tradingqna.com/u/amitskale)
#### Post date: [January 12, 2026, 9:28am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/3 "2026-01-12T09:28:12Z")
Great news. Long awaited feature is added finally.
Just one query - whether instant redemption facility be available even if “Zerodha Overnight Fund” investment is done through “Coin” or is it available if invested only through WhatsApp channel?
Please clarify
Thanks
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### Author:  [@vsavla](https://tradingqna.com/u/vsavla)
#### Post date: [January 12, 2026, 11:15am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/4 "2026-01-12T11:15:39Z")
@VishalJain while investing through the WhatsApp flow, the investment is made in the existing Coin demat folio for existing investors (I have existing investments in Zerodha LM250 fund through Coin). There’s no option to create a new non-demat folio through the WhatsApp flow.
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### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [January 12, 2026, 12:47pm UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/5 "2026-01-12T12:47:12Z")
Hi,
We are still working on providing this option.
Thanks.
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### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [January 12, 2026, 12:48pm UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/6 "2026-01-12T12:48:01Z")
The Instant Withdrawal facility from the WhatsApp flow is available for units held in SOA (non-demat) folios, regardless of the platform used to invest (including WhatsApp, or other platforms).
However, if the investment is held in a demat folio, instant withdrawal is not available directly through the AMC at the moment.
Hope this clarifies. Pls let me know if you have other questions.
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### Author:  [@niftymonk](https://tradingqna.com/u/niftymonk)
#### Post date: [January 13, 2026, 10:06am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/7 "2026-01-13T10:06:11Z")
> [@VishalJain](#):
>
> Limits: You can withdraw up to ₹50,000 or 90% of your current investment value per day, whichever is lower.
@VishalJain Lets say i have investement of 5 lakhs and i sell them, will i get 50k instantly and 4.5 lakh next day. Or should i place order for less than 90% to get it instantly.
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### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [January 13, 2026, 11:07am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/8 "2026-01-13T11:07:42Z")
Hi,
The Instant Redemption facility only accepts applications for amounts up to ₹50,000 or 90% of your investment value (whichever is lower), so a single request for ₹5 Lakhs will not be processed instantly. To access your funds, you can place a separate “Instant” order for ₹50,000 to receive it immediately and a “Standard” order for the remaining ₹4.5 Lakhs.
Alternatively, you may simply place one Standard Redemption for the full amount to be credited within the normal T+1 settlement timeline.
Thanks.
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### Author:  [@Walker](https://tradingqna.com/u/Walker)
#### Post date: [January 13, 2026, 5:30pm UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/9 "2026-01-13T17:30:33Z")
How does this work in the backend?
As mentioned, we can access this facility even on weekends. Since markets are closed, no actual units are being sold during that time. Does this mean Zerodha is providing the money from its own funds? If so, does Zerodha later sell those units separately on its end?
For example, suppose I withdraw ₹50,000 using the instant option on a Sunday and place an order for the remaining amount, which will be processed the next day. Since this is an overnight fund, the NAV will increase on Monday. The remaining units would then be sold at the higher NAV, adjusted for the ₹50,000 already withdrawn.
In that case, does Zerodha pocket the difference? Or is my understanding of the process completely wrong?
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### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [January 14, 2026, 4:39am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/10 "2026-01-14T04:39:02Z")
Hi
Here is the backend breakdown:
1. **Funding:** The money comes directly from the **Overnight Scheme** via their mandatory cash liquidity buffer, not from the AMC’s own pocket.
2. **Real-Time Processing:** Your units are **extinguished (cancelled) immediately** in the backend the moment you click withdraw; they do not exist on Monday to be sold, meaning they stop earning interest instantly. Essentially, the units are gone before Monday’s price jump.
3. **NAV Applicability:** The system applies the **lower of the previous day’s or current day’s NAV** or **lower of the current day’s or next day’s NAV** depending on the redemption timing.
Think of it this way: while the underlying market is closed on a Sunday, the scheme’s internal operations remain open. The system processes your application in real-time - applying the strict NAV rules and respecting cut-offs immediately - while using its mandatory cash buffers to fulfill the withdrawal. This means the fund settles your exit and extinguishes the units instantly on Sunday, without needing the market to be open to sell the actual assets.
Hope this helps.
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### Author:  [@BB789](https://tradingqna.com/u/BB789)
#### Post date: [January 14, 2026, 4:41am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/11 "2026-01-14T04:41:57Z")
Why 50k limit?
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### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [January 14, 2026, 6:48am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/12 "2026-01-14T06:48:11Z")
Hi,
The ₹50,000 limit is a regulatory cap mandated by SEBI for all instant redemption facilities. For any withdrawal requirement above this daily limit, you may use the standard redemption process, which will be credited to your account within the standard settlement cycle (typically 1-2 business days).
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### Author:  [@Aakash\_Kumar3](https://tradingqna.com/u/Aakash_Kumar3)
#### Post date: [January 16, 2026, 4:38am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/13 "2026-01-16T04:38:33Z")
When it will be available on coin ?
I have some imvestment in liquid fund so this option instant rdeemation will be appicable for liquid fund as well ?
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### Author:  [@Aakash\_Kumar3](https://tradingqna.com/u/Aakash_Kumar3)
#### Post date: [January 16, 2026, 4:39am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/14 "2026-01-16T04:39:47Z")
One question for stock, when you are launching auto money deduct using mandata for STOCK purchase using auto sip.
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### Author:  [@raghav.95](https://tradingqna.com/u/raghav.95)
#### Post date: [August 3, 2026, 4:46pm UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/15 "2026-08-03T16:46:22Z")
i have been looking for something like this since long because sometimes i require funds in emergency scenarios . But the 50k limit might be insufficient.
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### Author:  [@Prashanth\_Cm](https://tradingqna.com/u/Prashanth_Cm)
#### Post date: [August 10, 2026, 2:21pm UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/16 "2026-08-10T14:21:26Z")
I’m not sure but I’ve seen some articles saying it’s 50k per pan per scheme per investor. So if we’ve funds across different amcs and schemes may be we can withdraw on same day. @VishalJain is it true?
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### Author:  [@VishalJain](https://tradingqna.com/u/VishalJain)
#### Post date: [August 11, 2026, 4:55am UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/17 "2026-08-11T04:55:27Z")
Hey Prashanth, i presume this is pertaining to insta redemption. The limit is 50k or 90% of portfolio, whichever is lower at a folio level. So technically, if you have funds across different amcs, you could withdraw more than 50k the same day. Rgds
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### Author:  [@Prashanth\_Cm](https://tradingqna.com/u/Prashanth_Cm)
#### Post date: [August 11, 2026, 5:00pm UTC](https://tradingqna.com/t/launching-instant-redemption-on-the-zerodha-overnight-fund/190347/18 "2026-08-11T17:00:27Z")
Thank you so much for the clarification.