“I made a couple of amazing investments today”, announced Nikhil. His voice was brimming with excitement.
Nikhil and I had recently become friends.
“OK. And what are those?” I was curious.
“I have applied to this new fund offer of Select micro cap series N. The fund house is known for its stock picking skills in this category. In this new fund too, they will pick the best of the micro sized companies. In fact, the past returns of such offers has been in the 30s.”
It looks like Nikhil was sold big time on this new fund. He himself was sounding like a fund salesman. “Is this a closed ended fund, I mean is there a lock in?” I queried.
“Yes, 5 year lock-in. But that is OK. Micro caps need that much time.” This was further proof. The AMC should actually consider hiring him.
“Who told you about this fund?”
“My bank relationship manager.”
“Oh! so you bought it from the bank.”
