They were playing casually.
I clearly saw it was all about return bias, recency bias and anchoring bias.
Few understood what he was doing. Their trust was driven by incentives.
Interestingly, the guy was doing a very decent job. He picked his risks well and set decent pricing to reward his investors adequately.
Importantly, he worked to create upside if he was right.
For someone selling debt showing past performance, this was easy to sell.
Lazy salesmen at his AMC and outside sold this story big without explaining.
But, TER, sales incentives and commissions sedated the support system which never took manager's message to the end investor.
Here SK was not showing enough discretion. Just when he needed patient investor support , Advisory faith and AMC ability to mobilize money, all 3 let him down.
Investors will avoid a postmortem of their failure to understand investments. IFA's will never talk of failure to set right expectations. FT sales won't introspect either.