Liquid and Overnight mutual funds, once mainly used by corporate treasuries, are now catching the eye of individual investors. The reason? A nifty feature called Instant Redemption. "The facility makes it easier to use mutual funds for everyday cash needs, while retaining the simplicity of an overnight fund," said Vishal Jain, CEO of Zerodha Mutual Fund. Investors can now request withdrawals through a fund's app and get their money in minutes. "An investor can use this feature for any emergency funding and yet make his idle money earn some return," added A Balasubramanian, MD and CEO of Aditya Birla Sun Life Mutual Fund. These funds currently offer returns between 6.5% and 7%. The Instant Redemption feature is especially popular with younger investors who want speed. For example, on a volatile trading day when stocks fall, an investor can quickly pull money from a debt fund and buy more equities the same day. Santosh Pandey, head of Client Service and Operations at DSP Mutual Fund, noted, "On sharp market down days, Instant Redemption allows investors to withdraw and invest in equity-oriented funds with same-day NAV." However, adoption is still limited. The main reason is that many third-party platforms do not yet support this feature. Investors usually must use the fund house's own app or website. Additionally, there is a daily cap on redemptions: 90% of the investment value, up to ₹50,000 per day. Amounts beyond this follow the regular one-day payout. This cap might not suit wealthier investors who want more liquid access. Still, Instant Redemption is changing how people use debt mutual funds, blending ease with good returns.