32 Mutual Funds that invested in downgraded bonds of Yes bank – Should you exit?

32 Mutual Funds Schemes that invested in downgraded bonds of Yes bank – Should you exitMutual Funds Schemes that invested in downgraded bonds of Yes bank – Should you exit?

Recent downgrading debt paper incidents are giving wake-up call for Mutual Fund Investors. While investors thought there could be fewer negative incidents about debt mutual fund, the list just continues. Now it is Yes Bank’s turn. Last week ICRA Research has downgraded the debt papers of Yes Bank. There are almost 32 mutual fund schemes that invested in Yes Bank Debt papers that would have an impact with the negative outlook given by ICRA Research. Which Mutual Fund AMC has invested more in this downgraded debt paper of Yes Bank? What is the list of 32 mutual fund Schemes which invested in long term bonds of Yes Bank. Should you exit from Mutual Fund Schemes that invested in downgraded debt bonds of Yes bank?

Also read: ECL Finance NCD Opens or subscription – Should you invest?

Why ICRA Research downgraded debt papers of Yes Bank?

Earlier in Nov-2018, debt papers of Yes Bank were moved to “watch” with negative implications.

Last week, ICRA Research released a report where Yes Bank long term bonds were downgraded to Negative outlook. ICRA, in a release, stated that “with a sizeable increase in the share of BB and below rated advances and the weakened capital cushions, the outlook on the ratings remains Negative.”

Which Mutual Fund AMCs invested in long term debt papers of Yes Bank?

There are almost 11 AMC’s that invested in long term bonds of Yes Bank, which was downgraded by ICRA Research. Here is the list of AMCs along with the Invested value in Crores

1) Reliance Mutual Funds – Rs 2,294 Crores

2) Franklin Templeton Mutual Funds – Rs 1,083 Crores

3) UTI Mutual Funds – Rs 470 Crores

4) Kotak Mutual Funds – Rs 124 Crores

5) Baroda Mutual Funds – Rs 69 Crores

6) DHFL Mutual Funds – Rs 66 Crores

7) Sundaram Mutual Funds – Rs 55 Crores

8) Aditya Birla Mutual Funds – Rs 11 Crores

9) IDBI Mutual Funds – Rs 9 Crores

10) L&T Mutual Funds – Rs 5 Crores

11) Mahindra Mutual Funds – Rs 5 Crores

Which are the Mutual Fund Schemes that invested in downgraded debt papers / bonds of Yes Bank?

Here are the list of 32 mutual fund schemes invested in Yes Bank long term bonds that got downgraded last week. We have given top 5 mutual fund schemes that have invested in high value.

1) Reliance Equity Hybrid Fund invested Rs 732 Crores

2) Reliance Credit Risk Fund invested Rs 598 Crores

3) Reliance Strategic Debt Fund invested Rs 524 Crores

4) Franklin India ST Income Plan invested Rs 335 Crores

5) Franklin India Credit Risk Fund invested Rs 161 Crores

Here is the balance list.

6) Aditya Birla SL Regular Savings

7) Baroda Credit Risk Fund-A

8) Baroda Treasury Adv Fund

9) DHFL Pramerica Banking & PSU Debt Fund

10) DHFL Pramerica Credit Risk Fund

11) DHFL Pramerica Short Maturity

12) Franklin India Debt Hybrid Fund

13) Franklin India Dynamic Accrual Fund

14) IDBI Credit Risk Fund

15) Kotak Credit Risk Fund

16) Kotak Medium Term Fund

17) L&T Resurgent India Bond Fund

18) Mahindra Credit Risk Yojana-Reg

19) Reliance Arbitrage Fund

20) Reliance Balanced Advantage Fund

21) Reliance Equity Savings Fund

22) Reliance Hybrid Bond Fund

23) Sundaram Equity Hybrid Fund

24) Sundaram Medium Term Bond Fund

25) UTI CCF – Savings Plan

26) UTI Credit Risk Fund-Reg

27) UTI Hybrid Equity Fund-Reg

28) UTI Medium Term Fund

29) UTI Multi Asset Fund

30) UTI Regular Savings Fund

31) UTI Retirement Benefit Pension


Also Read: Best SIP Mutual Funds

Should you exit from 32 Mutual Fund Schemes that invested in downgrading bonds of Yes bank?

Each and every mutual fund scheme offer document says “mutual fund investments are subject to market risk…. “. If you are investing in mutual fund scheme means, you understood the risks and then invested. These is on the theory part.

However, when it comes to practical situations, investors might have worried whether to continue their mutual fund investments or exit with such Mfs that invested in downgraded debt papers. Here is my piece of advice

1) If you are a low risk taker and invested in these equity and debt mutual fund schemes assuming these are low risk, you can exit from such mutual funds now.

2) If you need money in the near term, then my advice is to exit from such funds now. In future and in extreme cases, you may see worst and then you may not be able to exit at that time.

3) If you are a long term investor and willing to take such risks and expecting higher returns,you can continue to invest in such high risk mutual fund schemes.  

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Suresh KP

32 Mutual Funds Schemes that invested in downgraded bonds of Yes bank – Should you exit?

The Author

Suresh KP

Suresh KP i.e. me have written 1,800+ articles on this blog. I have done by B.Com from Osmania University and then MBA-Finance from Symbiosis University, Pune. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPOs, reviewing Insurance Products, analysing Health insurance Plans etc.


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  1. Analysts say Mutual Funds are safe investment bets than directly investing in Equity.With so much technology at their command,Fund Managers of MFs have taken wrong decisions.Recently SEBI ordered disgorgement of salaries of top brass of BSE.SEBI should now issue similar orders on these inefficient Fund Managers.AMFI should follow up with SEBI for the same.

    1. I echo with you. Thanks for your comments Ramakrishna

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