About 15 months after SEBI first introduced the concept of side pocketing, BOI Axa Mutual Fund has introduced the procedure in its debt as well as equity schemes. Side pocketing allows mutual funds to separate out a portion of their portfolio in lieu of troubled debt. Only existing investors are allotted units in this seggregated portfolio. Investors can then exit the remaining portion of the scheme without affecting their chance of benefiting from recovery in the debt, when it happens. Side pocketing was primarily designed for debt and money market schemes but the regulations also allow it for debt and money market instruments held in equity and hybrid schemes said Kaustubh Belapur, Director, Fund Research, Morningstar Investment Advisor India.
Insurers receptive to covering chronic ailments, declare PEDs honestly
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