Prayers for AVANTIFEED investors as it significantly underperforms

AVANTI FEEDS LIMITED was among the worst performers on Friday. It delivered -1.54% to close at 373.6. On a day when the overall market breadth was 71%, it closed higher than 86% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing AVANTIFEED]

Buy-and-Hold investors in AVANTIFEED experienced a maximum drawdown of -22.38% over the last three months. It delivered -2.83% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.

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AVANTIFEED has been underperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 19 Jan, 2016 to 10 Nov, 2017. Over the last 3 years and 1 month, AVANTIFEED outperformed the NIFTY-50 index on 46% days. Which indicates that on days AVANTIFEED outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.

AVANTIFEED was profitable on 52% days in the last three months. During this time, it delivered on average -0.01% per day. It delivered it's worst daily return of -10.95%, during this period, on Monday, 12 Nov, 2018. The longest stort-term trend during this period was 11 profitable days, which started on 23 Oct, 2018 and went on till 6 Nov, 2018. This bullish trend returned +16.3% to investors.

The last 12 months saw AVANTIFEED's investors making profits in 4 months and incurring losses in 8 months. AVANTIFEED was less consistent in delivering monthly returs than NIFTY-50 index. AVANTIFEED was also a more risky investment than NIFTY-50 index as it's worst month in the last year, May 2018, returned -34.49% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AVANTIFEED had a longer winning streak of losing months than NIFTY-50 index. It went down in 5 straight months (from May 2018 to Sep 2018) during which period it delivered -60.61%. It is interesting to note that both AVANTIFEED and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
-- Edmund Burke

AVANTIFEED is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in AVANTIFEED's volatility from 19 Oct, 2018 to 15 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that AVANTIFEED has significant negative skewness in it's return distribution. This indicates that AVANTIFEED is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than AVANTIFEED. Therefore, NIFTY-50 must receive a lower allocation than AVANTIFEED in your portfolio. NIFTY-50 index usually has shorter drawdown period than AVANTIFEED.

Based on your interest in AVANTIFEED you may find it interesting to know that NIFTY-GS-15YRPLUS, BRITANNIA and BAJFINANCE have all shown remarkable performance and qualify to be on every investor's watchlist.