FACT LTD ranked worse than it's peers on Friday. It returned -1.39% to close at 42.7. It is currently trading -33% below it's 52 week high of 64.0.
FACT showed a strong up trend over the last 3 months. During this period FACT returned +17.96% and saw a maximum drawdown of -13.69%. There were 2 long signals during this period that returned a cumulative of +2.0% to investors.
FACT has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, FACT outperformed the NIFTY-50 index on 44% days. Which indicates that on days FACT outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months FACT delivered losses on 54% days. However, it still managed to end this period in a profit. It's best return during this period (of +8.66%) was on Friday, 4 Jan, 2019. While it's worst loss in the same period (of -4.87%) was on Monday, 7 Jan, 2019. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 6 Nov, 2018. The bullish trend returned +20.55% to investors. This was followed by a bearish trend that started on 7 Nov, 2018 and ended on 15 Nov, 2018. This bearish trend lost -11.19% of investor capital.
On monthly basis, FACT delivered losses in more months over the last year, than profits. FACT delivered profits less regularly than NIFTY-50 index. FACT was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -27.39% compared to -6.42% returned by NIFTY-50 index in Sep 2018. FACT 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 -23.38%. It is interesting to note that both FACT and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.
FACT is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant surge in FACT's volatility from 3 Jan, 2019 to 4 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 FACT has significant negative skewness in it's return distribution. This indicates that FACT is very risky for short-term investment and can significantly underperform for long durations.
NIFTY-50 index has more chance of extreme outcomes than FACT. Therefore, NIFTY-50 must receive a lower allocation than FACT in your portfolio. NIFTY-50 index usually has shorter drawdown period than FACT.
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