RELIANCE ETF GOLD BEES managed to marginally outperform the broader market today. It gained +0.51% to close at 2872.7. It's recent 5 day performance has been -0.23%, -0.57%, +0.35%, +0.32% and +0.04%.
GOLDBEES is currently in a up trend. Over the last three months 2 bullish signals in GOLDBEES have generated a profit of +0.53% for investors.
GOLDBEES returned losses on 54% days in the last three months. During this time, it delivered on average +0.02% per day. It delivered it's best daily return of +2.09%, during this period, on Monday, 10 Dec, 2018. There was initially a bearish trend during this period which started on 20 Nov, 2018 and went on till 28 Nov, 2018. The trend delivered -1.9% losses to investors. This was followed by a bullish trend that started on 20 Dec, 2018 and ended on 28 Dec, 2018. This bullish trend delivered +2.07% to investors.
GOLDBEES had 8 profitable and 4 loss making months over the last year. GOLDBEES was profitable in more months than NIFTY-50 index. GOLDBEES was also a less risky investment than NIFTY-50 index as it's worst month in the last year, Nov 2018, returned -4.88% compared to -6.42% returned by NIFTY-50 index in Sep 2018. GOLDBEES 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 +2.56%. It is interesting to note that both GOLDBEES and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Know what you own, and know why you own it.
-- Peter Lynch
GOLDBEES 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 GOLDBEES's volatility from 26 Dec, 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 GOLDBEES has significant negative skewness in it's return distribution. This indicates that GOLDBEES is very risky for short-term investment and can significantly underperform for long durations.
GOLDBEES has more chance of extreme outcomes than the NIFTY-50 index. Therefore, GOLDBEES must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than GOLDBEES.
Based on your interest in GOLDBEES you may find it interesting to know that QGOLDHALF, GOLDSHARE and HDFCMFGETF have all performed similar to GOLDBEES and qualify as alternative investment candidates that must be evaluated for diversification.
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