Yes Mutual Fund has announced a New Fund Offer (NFO) for Yes Liquid Fund which will aim to generate optimal returns consistent with moderate levels of risk by investing in high quality debt and money market instruments. The NFO period for the scheme has begun from January 2, 2019 and will end on January 16, 2019.
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.
| Benchmark | 1 Year Return | 3 Year Return | 5 Year Return |
| CRISIL Liquid Fund Index | 7.45% | 7.23% | 7.85% |
*(Data as of November 30, 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 (direct variant) were recorded at 7.03%, 7.05% and 7.73% as of January 1, 2018.
Key information about the Yes Liquid Fund NFO
| NFO period | January 2, 2019 – January 16, 2019 |
| Minimum application amount | Rs. 10,000 |
| Exit load | Nil |
| Benchmark | CRISIL Liquid Fund Index |
| Fund Manager | Piyush Baranwal |