Creation of Segregated Portfolio by PPFAS

I got a mail recently from PPFAs, stating the “Creation of Segregated Portfolio” on their PPLAS Large Cap ( FlexICAP) Mutual Fund.

I was not able to understand the segregation and the table/example they have presented.
Can someone help me under the segregation and how does it affects the existing investor?

Are they going to reduce the number of units holded by the unit holder in the event of credit risk, instead of affecting the NAV price?
In that case, this wont give a true picture of the return on that mutual fund right?

Reference Link :

@Bhuvan Can you.

This is just an enabling provision. Equity funds park their cash in extremely safe instruments like FDs, Treps, T-Bills stec. This provision is just in case there is a default in on of those instruments, which will be extremely rare. Check this post to know what a side pocket is.

1 Like

Thank you very much for the clarity