Does "While Holding" Meaning Holding in Hand or Just on Your Person?

[Xeko]

Title is the question. Some magic items specify that you gain the effect "while holding" the item. Does this mean holding it in your hand, or could holding it on your back or in a pack count? Some items look like they would benefit a class at first glance, but, if they must hold the item in their hands to gain the effect, then the items actually wouldn't be all that helpful. For example, pact of blade warlock with Rod of the Pact Keeper, or a bow-weilding assassin rogue with Sentinel Shield. Taking the sentinel shield, for instance, if the item is stowed, the group is in town or something, and they get jumped, does the character not get the initiative bonus?

[Theaitetos]

It has to be held in your hand to provide you with the benefits. However, you don't need to fulfill other requirements like being able to attack with the weapon or having proficiency. For example, if you had a (totally made-up) two-handed Greatsword of the Archmage, you could use its benefits while holding it in just one hand, no need to use both hands.

[ShikomeKidoMi]

"Holding" means "held in your hand" in D&D, yes. Things you can put in a backpack and still benefit from will say something like while "in your possession" or "on your person".

This means that, yes, Bow-wielders don't always want to hold shields and only one handed weapon wielding Blade warlocks will get full use out of Pact rods.