2841.0 -18.87 (-0.66%) Buy

AXISGOLD investors take a moment to reassess their portfolio allocation

13 min read

AXIS MF - AXIS GOLD ETF underperformed broader market on Friday. It fell by -0.66% to close at 2841.0. On a day when the overall market breadth was 71%, it closed higher than 31% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.

[Themes containing AXISGOLD]

Buy-and-Hold investors in AXISGOLD experienced a maximum drawdown of -6.18% over the last three months. It delivered +2.06% during this bullish trending period. There were no short signals during this period, while the long signal generated profits of +2.06% for investors.


AXISGOLD has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 29 Feb, 2016 to 20 Aug, 2018. Over the last 3 years and 1 month, AXISGOLD underperformed the NIFTY-50 index on 50% days. Which indicates that on days AXISGOLD underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months AXISGOLD was mostly profitable and delivered on average +0.04% per day. It's best return during this period (of +3.13%) was on Wednesday, 14 Nov, 2018. While it's worst loss in the same period (of -2.55%) was on Tuesday, 13 Nov, 2018. The longest stort-term trends during this period were 6 profitable and losing days. The bullish trend (which returned +2.29%) started on 20 Dec, 2018 and went on till 28 Dec, 2018 while the bearish trend (which returned -2.81%) started on 22 Nov, 2018 and went on till 30 Nov, 2018.

During the last year AXISGOLD had 6 profitable months and 6 loss making months. AXISGOLD returned profits in more months than NIFTY-50 index. AXISGOLD was also a less risky investment than NIFTY-50 index as it's worst month in the last year, Nov 2018, returned -5.95% compared to -6.42% returned by NIFTY-50 index in Sep 2018. AXISGOLD had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -4.78%. It is interesting to note that both AXISGOLD and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

AXISGOLD 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 AXISGOLD's volatility from 3 Dec, 2018 to 1 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 AXISGOLD has significant negative skewness in it's return distribution. This indicates that AXISGOLD is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in AXISGOLD you may find it interesting to know that IEX is highly volatile and investors investing in it must take extreme caution. Consider either reducing your exposure to IEX or sufficiently diversifying your portfolio.

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