What is side-pocketing in MFs?
  • WebDesk BTVI
  • Jan 24 2019

Fund investors take credit & interest rate risks. Risk is when the borrower company is unable to repay principle or interest on maturity. 2 bonds from a basket of 30-40 bonds may default in debt fund investment. Pocketing makes sure no investor receives unfair treatment. Debt fund investors carry credit risks. In case of a default, all investors deserve a fair exit. Feroze Azeez, Anand Rathi Wealth Management, throws more light on side-pocketing in MFs.