BF UTILITIES LIMITED showed weakness today. It lost -0.58% to close at 204.85. During the last week it lost -7.91% and saw a maximum drawdown of -9.28% before bouncing back.
BFUTILITIE is currently in a down trend. Over the last three months trading short signals has not been a profitable strategy for BFUTILITIE's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned +1.94%). It is therefore better to tread with caution in the current downtrend by limiting your allocation to BFUTILITIE.
BFUTILITIE has been underperforming the NIFTY-50 index in recent time, after having outperformed till 1 Jan, 2016. Over the last 3 years and 1 month, BFUTILITIE underperformed the NIFTY-50 index on 58% days.
BFUTILITIE returned losses on 54% days in the last three months. During this time, it delivered on average +0.06% per day. It delivered it's best daily return of +6.91%, during this period, on Wednesday, 31 Oct, 2018. There was initially a bullish trend during this period which started on 31 Oct, 2018 and went on till 5 Nov, 2018. The bullish trend returned +8.66% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 10 Dec, 2018. This bearish trend lost -9.36% of investor capital.
BFUTILITIE had 4 profitable and 8 loss making months over the last year. During the last year, BFUTILITIE underperformed NIFTY-50 index on monthly return basis. BFUTILITIE was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -34.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. BFUTILITIE had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -36.35%. It is interesting to note that both BFUTILITIE and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Greed is not a financial issue. It's a heart issue.
-- Andy Stanley
BFUTILITIE is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in BFUTILITIE's volatility from 31 Oct, 2018 to 10 Dec, 2018. 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 BFUTILITIE has significant negative skewness in it's return distribution. This indicates that BFUTILITIE is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than BFUTILITIE. Therefore, NIFTY-50 must receive a lower allocation than BFUTILITIE in your portfolio. NIFTY-50 index usually has shorter drawdown period than BFUTILITIE.
Based on your interest in BFUTILITIE you may find it interesting to know that CUB has shown remarkable performance this year and deserves to be on every investors' watchlist.
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