What makes you think that in a black swan event Arman will lose 40% of AUM and Credit Access will not. Both are in MFI space and credit quality control for both of the companies are stringent and this is something that we have already seen in last black swan event i.e. Covid. MFI is a cyclical play and it is better to exit when there is a black swan event whether it is Arman or Credit Access. Arman is still small compared to Credit Access, hence for me Arman is a better investment as it can grow faster.
Disc: I invested in both Credit Access and Arman around 800 when the credit cycle started looking benign after Covid. Another trigger was change in MFI regulation. Later I realised that it is better to play MFI cycle through Arman due to higher growth. Hence , exited Credit Access with some gain and consolidated my holdings in Arman.
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