YES Mutual Fund has filed papers for Yes Ultra Short Term Fund. This is the AMC’s first filing, along with YES Liquid Fund after it received SEBI approval to start operating a mutual fund business in July 2018. Both filings have been made on the same day. The scheme will operate as an open-ended debt fund allowing investors to invest in/redeem its investments on all days when markets are open.
YES Ultra Short Term Fund will primarily invest in debt and money market securities (of Macaulay Duration between 3 to 6 months) with these accounting for up to 100% of scheme assets. Money market investments of this scheme may include treasury bills, commercial papers, commercial bills, government securities with residual maturity of up to 1 year, call money, etc. The scheme may also invest in securitized debt with a cap of 50% on net assets. Derivatives investments of the scheme including forward rate agreements, interest rate swaps, options and futures are capped at 50% of the scheme’s total assets.
CRISIL Ultra Short Term Debt Index will serve as the benchmark for the YES Ultra Short Term Fund. This index tracks a portfolio comprising certificates of deposit, commercial papers, short term corporate bonds rated AA/AA+/AAA and treasury bills. As of 1st November 2018, this index has provided 1 year returns of 7.44% while the 3 year and 5 year returns of the index have been recorded at 7.48% and 8.12% respectively (as of 31st October 2018).
Piyush Baranwal will serve as fund manager for YES Ultra Short Term Fund. No prior fund information is available as this is only the second filing from the fund house. In terms of expected returns for the scheme, category returns for ultra-short term schemes were recorded at 6.95% and 7.78% respectively (as of 5th November 2018).