Manappuram FY23 Total Employees: 63,760
Muthoot FY23 Total Employees: 27,273

That is a stark difference, even if we take out Microfinance Employees (close to 16,000)

I believe one reason for the same is the loan tenure which was 3 months for a very long time which required more employees to deal with customers and at the same time it kept the AUM low because employees were focused on renewing the loans rather than getting new loans. One big reason for IIFL’s growth I believe is that their loan tenure is 24 months which makes sure that the churn of loan book is low. Muthoot’s tenure is 12 months

I think they cannot increase MDR after a certain limit and so they have to use some tactics to reduce reward points redemption costs by probably decreasing validity excluding certain MCC codes such as utility, wallet where MDR is low, to improve their cost to income, this has been done by Axis almost all their CCs are devalued and lounge access is restricted too premium cards, that shall be done, I think NPA should not be an issue rather we have to understand that the NIM will contract but they done what should be the appropriate valuation in that case I am trying to figure that out.

Financial assets, precious metals, are opportunities to invest, either for diversification to reduce the volatility from volatile assets, or to gain some return when opportunities arise.

If indeed currency falls, compared to the state of society at that time, we will have bigger things to worry about than government returning our gold, holding physical gold may not help either in that situation.

Value of certain things changes with perception. It is said that, gold has value because everyone thinks that it has value, and if that perception changes, it may not be as valuable as it is today.

Just saying.

From your thread what I have concluded is…we need to focus on two important factors

1. Higher returns by fine tuning research
2. Long term holding period.

This will save us from committing higher savings for investing, and thus we can spend appropriately. So your corpus tend to depend less on your regular savings additions and more on returns and holding period.

@visuarchie Hello, thanks for sharing. Your approach appears quite interesting. However, to start with, I have got a few questions as under. Will help if you could answer them.

1. With my experience on trading with various approaches advocated by different people, I have come to the conclusion that cutting down ones losses in a timely manner is the most important aspect in any trading approach. How do you take care of this in your portfolio?

2. Almost all small caps/micro caps have risen in the last one year or so. Can it be just a coincidence that you got into it at the right time? This is not to belittle but would like to know what is so different in your portfolio that will enable it to stand during a small cap/micro cap carnage.

3. Regarding the time frame of 1 week and a fortnight for small cap and mid cap respectively, your’s probably is the smallest window I have come across so far. While it makes sense to me on a relative basis but any thoughts on why such a short period or why not 2 weeks and 3/4 weeks respectively?

4. May I ask what was the highest return of the top performing stock and the maximum loss percentage of the inferior stock in your portfolio?

5. On the replacement stratagem of the laggards, do you simply go with that available in the index or do you employ some screening criteria? On a similar note, how long do you allow the winners to run – is there any time frame?

6. In the portfolio of 20 stocks what is the percentage of small cap vs micro cap vs mid cap maintained by you? Any thoughts around this?

7. And lastly, do you plan to simply mirror the top ranking stocks of the index even beyond a year?