Yes Bank will start its mutual fund business in another three months, said two sources privy to the development. In fact, the AMC is in the final stage of getting SEBI approval to launch its first mutual fund scheme.
“We hope that we will receive SEBI approval to launch our first product in a week or two. After this, we will take another 2 months to launch our first scheme in the market,” said an official from Yes MF requesting anonymity.
The company has identified senior leadership and technology architecture to commence operations within 3 months. CAMS will be the registrar and transfer agent for the fund house.
Similar to other bank sponsored AMCs, Yes Bank will leverage its banking network to distribute its funds. “The AMC will channelize the savings of retail, corporate and institutional investors in equity and debt capital markets by leveraging Yes Bank’s expertise. This will complement Yes Bank’s retail liabilities strategy and also allow the AMC to leverage the bank’s distribution network for customer acquisition and provide customers a seamless experience for their investments & savings solutions,” says a company statement.
Yes Bank manages AUM of Rs.1730 crore from its MF distribution business.
Muthoot Finance, Frontline Capital Services and Karvy Stock Broking too have applied with SEBI to launch a mutual fund business in India.