Zerodha - Overnight Investment


Has someone used/tested the Zerodha feature called “Overnight investment”. Is anyone aware of what funds do they buy and what has been the return from those funds?

Clicking on “More Info” points to this writeup -

Is there a way I can ensure that I don’t miss any opportunity?

Yes. If a client hasn’t utilized all funds for an overnight position in the trading account even for one day in a quarter, he could buy liquid bees or liquid mutual funds any one day in the quarter and sell them the next day morning as soon as market opens. With liquid mutual funds, this trade can be done is such a way that the funds get debited only after market closing and credited before next day opening. Liquid funds are fixed income instruments and have no brokerage (at Zerodha) or STT charges. This way a client can ensure that funds are never blocked when markets are open and also not have to bear any bank or gateway charges.

If the client doesn’t have the bandwidth to do this on their own, client can request us to track, remind, and place an order for this. To do this, visit and set preference as ‘Buy overnight liquid fund’ as shown below.

In case of pledged securities, the only way out of not having to go through the entire pledge/unpledged requests would be to take a F&O position utilizing the collateral value completely on at least one day during the quarter.


By selecting this option, I think zerodha gets the interest and you keep the principal. Does it help you in anyway?

Zerodha.dont get any interest.its credit to client automatically in its de mate accounts


It looks like it is for 1 day in quarter end. And not on a daily basis.
That gives an idea, is there any facility in zerodha to invest unused funds on a nightly basis everyday?

Have they said anywhere about interest deposit to client bank account? Are you assuming that interest is paid out to customer?

I don’t have zerodha account. But I many times park my surplus funds from brokers account to liquid funds. They are listed in market. U get int from day 1. It’s calculated daily basis. And u get credit of that amount as fractional unit in demat account

You can make use of LIQUIDBEES. The money is instantly available when u sell it.

This option is provided by zerodha to customers so that the customers donot loose any opportunities in the market due to unavailability of the funds.

well, SEBI requires that brokerages payout excess funds (i guess > 1000). in the account to their respective bank account.
Now this credit into the bank account is not instantaneous and takes probably 1-2 working days.
The customer again has to manually transfer this amount back to zerodha and also bear the gateway charges. again, this is not instantaneous and there is some timeslot for it.
To avoid all this hassles, one can just select the option of transferring the funds in a “liquid fund” overnight. next day these funds are again available for use.
It would be futile to discuss the loss of interest for 1 day.

Zerodha has provided UPI option G-PAY with KITE APP where you can deposit instantly.
No pg charges.