Yes Mutual Fund has commenced operations in India by filing for Yes Liquid Fund with SEBI. The newly launched fund house received SEBI approval to launch its business as the mutual fund arm of Yes Bank relatively recently in June 2018. The scheme will operate as an open ended liquid scheme with zero exit load. As a result, you will be able to invest in and redeem your scheme units on all business days.
Yes Liquid Fund will invest up to 100% of assets in money market and debt instruments featuring maturity or residual maturity of up to 91 days. Money market investments of the scheme may include certificate of deposit, call money, treasury bills, commercial bills, commercial papers, usance bills, etc. Debt investments of the scheme may include securitized debt with cumulative allocation capped at 50% of net scheme assets. Derivative investments of the scheme such as forward rate agreements, interest rate swaps, options and futures may account for up to 50% of net assets. Yes Liquid Fund may also engage in short selling, credit default swaps and repo/reverse repo in corporate debt securities.
Yes Liquid Fund will be benchmarked against the CRISIL Liquid Fund Index. The index tracks the performance of a debt portfolio comprising certificates of deposit, commercial papers and TREPS (Triparty Repo Dealing System) which is the underlying instrument for the CRISIL CBLO Index. As of 1st November 2018, the 1 year returns of this index were recorded at 7.34% while the 3 year and 5 year returns were 7.34% and 8.09% respectively (as of 31st August 2018).
Yes Liquid Fund will be managed by Piyush Baranwal and this will be the first scheme he manages for Yes Mutual Fund. He was previously the head of fixed income at BOI Axa Mutual Fund. Being a new fund house, there are no other funds currently available from Yes Mutual Fund but the 1 year, 3 year and 5 year returns for the liquid fund category were recorded at 6.71%, 6.94% and 7.58% as of 5th November 2018.