70.15 -3.15 (-4.49%) Sell

IITL investors dump it

13 min read

IITL was among the worst performers today. On a longer term basis, investors in INDUSTRIAL INV TRUST LTD made +0.04% per day. Tuesday's performance of -4.49% was a underperformance compared to it's daily average.

[Themes containing IITL]

Buy-and-Hold investors in IITL experienced a maximum drawdown of -22.01% over the last three months. It fell by -15.23% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +1.4%.


IITL has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 30 Oct, 2017 to 29 Nov, 2018. Over the last 3 years and 1 month, IITL underperformed the NIFTY-50 index on 55% days.

IITL returned losses on 69% days in the last three months. During this time, it delivered on average -0.35% per day. It delivered it's best daily return of +5.0%, during this period, on Friday, 9 Nov, 2018. The longest stort-term trend during this period was 6 losing days, which started on 14 Nov, 2018 and ended on 22 Nov, 2018. This bearish trend lost -17.47% of investor capital.

During the last year IITL had 5 profitable months and 7 loss making months. Profitable number of months of IITL and NIFTY-50 index were the same. IITL significantly outperformed NIFTY-50 index in Aug 2018, when it returned +31.96% compared to +6.21% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. IITL 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 -38.52%.

"As in roulette, same is true of the stock trader, who will find that the expense of trading weights the dice heavily against him.

IITL 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 IITL's volatility from 29 Oct, 2018 to 12 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 29 Oct, 2018 to 22 Jan, 2019.

Advanced/professional short-term investors should note that IITL has significant negative skewness in it's return distribution. This indicates that IITL is very risky for short-term investment and can significantly underperform for long durations.

IITL has more chance of extreme outcomes than the NIFTY-50 index. Therefore, IITL must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than IITL.

On a general note (since you are interested in IITL), three instruments that have performed similar to IITL are KOHINOOR, ELECTCAST and ADANIENT. They must all be evaluated as alternative investment options and for diversification.

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