ANKUR TYAGI
Instant Redemption Facility
Overnight mutual funds are becoming a popular choice for investors who want to earn extra returns on idle money without locking it away. With new features introduced by banks, fund houses, and regulations from the Securities and Exchange Board of India (SEBI), withdrawals from these funds have become faster and more convenient.
Here’s a simple guide on how long it takes to get money from overnight mutual funds back into your savings account, and how Jio Savings Pro makes the process seamless. One of the biggest advantages today is the instant redemption option. For smaller amounts, many platforms now allow withdrawals within minutes.
Take Jio Savings Pro as an example:
- Investors can instantly redeem up to ₹50,000 or 90% of their balance (whichever is lower).
- The remaining amount (above the instant limit) is credited via the normal mutual fund process, usually within 1–2 working days.
- Daily investments through Jio’s facility are capped at ₹1.5 lakh, following SEBI’s guidelines.
This feature makes it easy to use your idle money for short-term needs without worrying about delays.
Other Fund Houses Offering Instant Access
Apart from Jio, other AMCs such as PPFAS, Axis, Aditya Birla Sun Life, ICICI Prudential, Nippon India, Sundaram, and PGIM also provide similar instant redemption options for overnight funds.
For example, PPFAS Mutual Fund offers same-day credit through IMPS, ensuring liquidity when you need it most.
SEBI first approved this facility in 2021, giving investors the flexibility to redeem instantly under defined limits.
Standard Redemption Timelines
If your redemption doesn’t fall under the instant access limit, the cut-off time plays an important role:
- Online redemptions: Cut-off time is 7 PM
- Offline or regular redemptions: Cut-off time is 3 PM
Here’s how it works:
- Before cut-off time: Your request is processed on the same day’s NAV. The payout reaches your account the next business day (T+1).
- After cut-off time: Your request is processed on the next day’s NAV, and the money is credited the following business day (T+2).
In most cases, especially with online transactions, the funds reach your savings account within 24 hours of the AMC releasing them. However, actual credit timing may vary depending on your bank’s systems.
Key Takeaway
Overnight mutual funds are no longer just about safe, short-term returns — they now offer instant liquidity for smaller amounts and quick processing for larger withdrawals. With Jio Savings Pro and other platforms, investors can enjoy the dual benefit of earning returns on idle money while having the flexibility to access funds whenever needed.
Abhishek Sinha
