Yes Bank customers get relief, big trouble for mutual funds investors
Yes Bank customers get relief, big trouble for mutual funds investors
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After Yes Bank  crisis, financial experts say that the money of the customers of the bank is completely safe, but investors buying mutual funds and YES Bank shares may feel disappointed. Experts also point out that mutual fund companies usually invest the amount of common investors in perpetual bonds of banks, apart from this, there is no maturity period for perpetual bonds. Therefore, it is taken as equity, not debt. According to the rule, the value of these perpetual bonds becomes zero when the bank fails.

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As per the financial market estimates, mutual fund companies were buying Rs 2,700 crore of perpetual bonds from Yes Bank. Now the value of these bonds can be reduced to zero. Mutual funds or mutual fund investors buying Yes Bank's perpetual bonds or shares will incur losses. Kirtan Shah, Chief Financial Planner of SRE Limited, said that in the current situation if an investor wants money, he should withdraw it immediately because there is no hope of good returns in the recent past.

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As of now, Ashutosh Bishnoi, CEO of Mahindra Mutual Fund, expresses a little hope, "After restructuring the bank, a new board can be talked about for a perpetual bond and a solution can be found, but the rule estimates that the bond is no longer. He said that Mahindra Mutual Fund, taking the risk of Yes Bank, withdrew all its funds from Yes Bank's perpetual bonds during the last one year, while Vishnoi said that the same is for the buyers of Yes Bank. According to the rule, their shares will now become worthless. Their fate can be decided only after the formation of a new board.

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