Side Pocketing option in Debt Mutual fund Schemes


Recently Some Debt Mutual fund schemes have opted for Side Pocketing option.The Side Pocket is generally formed by creating separate portfolio of illiquid, distressed and hard to value assets. Each investor is allocated his/her pro rata interest in the side pocketed portfolio.This process is useful as it helps small investors from being hit by sudden exits of large investors. This option is not mandatory by SEBI. This decision is left to the discretion of the AMC and its trustees. So, when...

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Rachana Oza

blogs from Ahmedabad