FUT LIFESTYLE FASH LTD delivered stellar performance on Friday. It gained +4.36% to close at 407.35. It is currently trading -12% below it's 52 week high of 465.7.
FLFL showed a up trend over the last 3 months. During this period FLFL gained +5.05% and saw a maximum drawdown of -7.34%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in FLFL till volatility reduces and a clear trend emerges.
FLFL has been outperforming the NIFTY-50 index in recent time. Over the last 3 years and 1 month, FLFL outperformed the NIFTY-50 index on 50% days. Which indicates that on days FLFL outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
FLFL returned losses on 54% days in the last three months. During this time, it delivered on average +0.1% per day. It delivered it's best daily return of +7.04%, during this period, on Monday, 31 Dec, 2018. There was initially a bullish trend during this period which started on 18 Dec, 2018 and went on till 21 Dec, 2018. The bullish trend returned +3.63% to investors. This was followed by a bearish trend that started on 24 Dec, 2018 and ended on 28 Dec, 2018. This bearish trend lost -2.66% of investor capital.
FLFL had 7 profitable and 5 loss making months over the last year. FLFL was profitable in more months than NIFTY-50 index. FLFL was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -8.73% compared to -6.42% returned by NIFTY-50 index in Sep 2018. FLFL had a longer winning streak of profitable months than NIFTY-50 index. It went up in 4 straight months (from Feb 2018 to May 2018) during which period it delivered +16.94%.
A stock broker is one who invests other people's money until its all gone.
-- Woody Allen
FLFL 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 fall in FLFL's volatility from 22 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 FLFL has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
NIFTY-50 index has more chance of extreme outcomes than FLFL. Therefore, NIFTY-50 must receive a lower allocation than FLFL in your portfolio. NIFTY-50 index usually has shorter drawdown period than FLFL.
On a general note (since you are interested in FLFL), three small cap instruments that deserve special mention are NIITTECH, ASTRAZEN and VINATIORGA. They have all outperformed the market and must be closely watched for investment opportunities.
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