Don’t think you should look at ways to avoid quarterly settlement, it does cause some inconvenience for traders but this rule was brought by SEBI to safeguard interests of retail traders/investors.
If you want to invest in Liquid or Overnight funds then I’d suggest you read the following post to know more about these Mutual Fund’s. Everything you need to know about Liquidbees and Liquid Exchange Traded Funds (ETFs)
For in dept information, you can read the Debt Fund chapters in this module on Varsity.