DHUNSERI INVESTMENTS LTD outperformed on Friday. It surged by +2.32% to close at 269.2. On a day when the overall market breadth was 71%, it closed higher than 87% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.02%.
DHUNINV showed a bullish trend over the last 3 months. During this period DHUNINV surged by +5.57% and saw a maximum drawdown of -18.17%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in DHUNINV till volatility reduces and a clear trend emerges.
DHUNINV has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 28 Sep, 2016 to 11 Jan, 2018. Over the last 3 years and 1 month, DHUNINV outperformed the NIFTY-50 index on 45% days. Which indicates that on days DHUNINV outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
DHUNINV returned losses on 54% days in the last three months. During this time, it delivered on average +0.11% per day. It delivered it's best daily return of +8.23%, during this period, on Monday, 29 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 15 Nov, 2018 and ended on 26 Nov, 2018. This bearish trend lost -10.44% of investor capital.
During the last year DHUNINV had 4 profitable months and 8 loss making months. DHUNINV returned profits in fewer months than NIFTY-50 index. DHUNINV was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.63% compared to -6.42% returned by NIFTY-50 index in Sep 2018. DHUNINV had a longer winning streak of losing months than NIFTY-50 index. It went down in 6 straight months (from Feb 2018 to Jul 2018) during which period it delivered -41.7%. It is interesting to note that both DHUNINV and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Finance, like time, devours its own children.
-- Honore de Balzac
DHUNINV 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 DHUNINV's volatility from 19 Oct, 2018 to 17 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 DHUNINV has significant negative skewness in it's return distribution. This indicates that DHUNINV is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than DHUNINV. Therefore, NIFTY-50 must receive a lower allocation than DHUNINV in your portfolio. NIFTY-50 index usually has shorter drawdown period than DHUNINV.
Based on your interest in DHUNINV you may find it interesting to know that SAKSOFT has delivered similar performance as DHUNINV and can be considered as an alternative investment candidate (to DHUNINV).
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