The Hindu Business Line : Money Talk

Thomas Muthoot is the Managing Director of Muthoot Pappachan Group. The group, which operates in diversified businesses, has a strong presence in hospitality, infrastructure and financial services among others. Its financial services arm, Muthoot Fin Corp Ltd, is among the larger providers of gold loans in the country. New financial product designing and strategic planning are Mr Thomas's core areas. He has also been involved in microfinance operations. An avid reader of biographies and books on microfinance, he shares his investing habits:

When did you start investing? I started investing at the age of 32 and acquired enormous knowledge from my brother who is an investor.

What asset allocation did you start with and how has it changed over the years?

Personally, I invested a great deal in equities. I started with over 85 per cent exposure to equity. Over the years, I have diversified into real-estate and other businesses and abridged my investment in equities to close to 60 per cent now.

Did you start with investment in real-estate before moving on to direct investing?

Our family has investments in real-estate among various other options. We simultaneous invested in other asset classes.

Which was the first stock you picked, at what age and did you make money on it; any learnings from that experience? Are you systematic in allocation of finances?

I remember taking exposure in the State Bank of India stock at age of 32. I have been buying the stock whenever there is a plunge. I strongly believe in investing in fundamentally-strong companies as they are the ones that hold promise in the long run.

On portfolio size and return expectations...

I would not like to comment on the size of the portfolio, but I do consider 15-16 per cent to be a decent return over a long term.

Are you entrusting funds to a financial planner/portfolio manager or handling on your own?

I do take advice from professional fund managers at times but prefer taking decisions myself.

Direct investing vs mutual funds (SIPs or theme funds).

Mutual funds are a good avenue of investment, especially if one does not have the time to take a studied decision. I prefer to have a blend of fundamentally-strong stocks and exceedingly well-performing mutual funds in my portfolio.

Books on investing that have impressed you.

The Warren Buffet Way by Robert Hagstorm.

Your advice to young investors.

Start early. Rely on fundamentals. Stay invested and, last, but not the least, don't pay attention to market gossip.

Radhika Kamath

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