While the average redemption amount stands at around Rs 9,000, a significant 68% of all transactions remain below Rs 5,000 and investors look to be utilizing this facility for managing day-to-day cash flows or addressing precise liquidity needs, according to a press release by Zerodha Mutual Fund.

This high volume of small-ticket withdrawals highlights the role of the facility in micro liquidity management. Since the facility allows for partial redemptions that hit the bank account in minutes, investors can withdraw the exact amount required for immediate use, allowing the remainder of their capital to stay invested.

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Zerodha Fund House has introduced a 24×7 instant withdrawal facility in Zerodha Overnight Fund. Available through the fund house’s WhatsApp channel, this feature allows resident individual investors holding units in non-demat mode to access their money within minutes, even on weekends and bank holidays.

The eligible investors can redeem up to the lower of Rs 50,000 or 90% of their investment value per day, with funds credited directly to their registered bank account.

“You realize the true value of your savings in how quickly you can use them when you need them most. We believe that accessing your money should be a seamless part of daily life. By bringing the Instant Access Facility for our Overnight Fund directly to WhatsApp, we are meeting investors where they already are – making liquidity management as simple and natural as a conversation,” said Vishal Jain, CEO of Zerodha Fund House.
The Instant Access Facility (IAF) has emerged as one of the avenues for Indian investors to manage their immediate liquidity and since its introduction in 2017, the facility has processed over 23 lakh transactions amounting to more than Rs 2,100 crore with three key observations in how investors have used this facility, the fund house further said.
According to the fund house, from financial year 2016-17 to December 2025, the total redemption value processed has been Rs 2,111.97 crore, the total transaction count was recorded at 23.07 lakh, the weekend share was nearly 22% which means 5.04 lakh transactions were done. The frequency of usage was 1-5 times in a Financial Year.
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The number of unique investors more than doubled in the last five years – rising from 2.55 lakh in FY20-21 to over 5.84 lakh by late 2025. This steady growth, coupled with frequency of usage, shows that for many, the facility has possibly become a recurring choice for managing liquidity. Once investors experience the speed of the transaction, they usually return to it multiple times throughout the year.

While standard mutual fund redemptions typically take 2-3 business days, the Instant Access Facility allows investors to access their money instantly with a Rs 50,000 or 90% of your current investment value per day, whichever is lower as prescribed under the SEBI (Mutual Funds) Regulations, 1996.

The round the clock nature of this liquidity is substantiated by the 5 lakh+ transactions amounting to Rs 359 Crore initiated on non-business days, proving that one of the core values of the facility lies in its 24/7 availability.

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