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What is side-pocketing in MFs and how it works in investment portfolio?

Sebi has allowed mutual fund schemes the option of 'side-pocketing' which will help both fund houses and investors

NBFC

The Securities and Exchange Board of India has allowed mutual fund schemes the option of ‘side-pocketing’. The move will help both fund houses and investors. Samie Modak & Jash Kriplani explain:  What is side-pocketing? Side-pocketing is a popular tool in the hedge fund and asset management industry. It is a term used for segregating bad or illiquid assets from the healthier or liquid ones. In layman’s terms, it is separating the bad apples from the good ones. Side-pocketing is in the news after the Sebi board on Wednesday formally allowed this option for ...