InvestorQ : What are instant redemption Mutual funds?
Ishita Jain made post

What are instant redemption Mutual funds?

vani Patil answered.
11 months ago
Instant redemption funds are common in liquid funds which do not have any lock-in period and can be redeemed when the investor desires so. Many liquid funds have introduced the facility that allows investors to instantly redeem their proceeds. This facility varies from fund house to fund house. Say, one fund house allows withdrawal of up to Rs 50,000 per day per fund.

Under this type of fund, one’s withdrawal request is processed immediately. Also, these funds are considered to be safer than any other debt fund and can be generally within 24 working hours. Interest on these funds is better from the savings bank account. However, these funds are not to be considered as an alternative for savings bank account even though they provide higher returns.