A side pocket allows fund managers to remove a toxic bond from the rest of the ‘good’ assets of a mutual fund. Side pockets are mainly used by hedge funds but recently have been used by at least two fund houses in India. Sebi is considering a proposal to allow side pockets. But does it work for investors?
AMCs should not use it routinely: Aashish P. Aomaiyaa, Managing director and CEO, Motilal Oswal Asset Management Co. Ltd
