Review: Yes Mutual Fund debuts with liquid fund, NFO open till Jan 16Yes Mutual Fund, which received SEBI’s nod in June’18 for commencing business operations as a mutual fund (MF) arm of Yes Bank, has floated its first MF scheme, Yes Liquid Fund. The NFO opened on January 2, 2018 and will be open till January 16, 2018 for subscription. The scheme aims to generate optimal returns consistent with moderate levels of risk and high liquidity by investing in high quality debt and money market instruments.

As per the mandate of liquid funds, Yes Liquid Fund will also allocate 100% of its assets towards Debt & money market instruments with maturity period less than 91 days. As there is no historical track record of the fund house to compare, we refer to liquid fund category returns which is 6.89% for 1 year period (as on 3rd Jan’19) as per data firm Value Research.

The fund follows Crisil Liquid Fund Index as a benchmark. As on 31 December 2018, 1-year return of the index stands at 7.58%.

This fund will be managed by Piyush Baranwal, who has over 10 years’ experience in portfolio management and trading in fixed income securities.

Minimum subscription amount in the fund is Rs 10,000. There are only 2 other liquid schemes – Franklin India Liquid Fund and L&T Liquid Fund who have such high minimum investment amount. For all other funds minimum investment amount ranges between Rs 100 and Rs 500.

Key Product Features:

NFO Period 2nd-Jan-2019 to 16th-Jan-2019
Benchmark Crisil Liquid Fund Index
Min Application Amount Rs 10,000 and in multiples of Re. 1/- thereafter.
Plans and options Regular & Direct Plans Under which following Options are offered
-Growth
-Daily Dividend (Reinvestment)
-Weekly Dividend (Payout & Reinvestment)
-Fortnightly Dividend (Payout & Reinvestment)
-Monthly Dividend (Payout & Reinvestment)
Risk Profile Low Risk
Investor Suitability This product is suitable for investors who are seeking
• Regular income over short term
• Investment in money market and debt instruments

RupeeIQ Take: Liquid funds are a superior alternative to savings bank accounts. We strongly recommend parking the surplus cash in such funds on a regular basis. What matters the most while choosing a liquid fund is ease of subscription and redemption. We would advise investors to understand the operational feasibility of easy redemptions w.r.t Yes Liquid Fund.

Author
Priyanka Bharati

Priyanka Bharati is a senior personal finance analyst with RupeeIQ. She can be reached on priyanka.bharati@rupeeiq.com