Search for alternative investments is on for QNIFTY investors as it performed worse than the broader market
23 Jan, 201913 min read
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QUANTUM NIFTY ETF delivered lacklustre performance on Wednesday. It fell by -0.59% to close at 1105.5. It is currently trading +10% above it's 52 week low of 1004.5 and is down only -8% from it's 52 week high.
QNIFTY is currently in a bullish trend. The current bullish signal has generated a profit of +2.84% for QNIFTY's investors in the last three months.
QNIFTY has been outperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 15 Nov, 2017 to 12 Mar, 2018. Over the last 3 years and 1 month, QNIFTY underperformed the NIFTY-50 index on 45% days. Which indicates that on days QNIFTY underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.
QNIFTY returned losses on 54% days in the last three months. During this time, it delivered on average +0.15% per day. It delivered it's best daily return of +3.53%, during this period, on Monday, 17 Dec, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 9 Jan, 2019 and went on till 21 Jan, 2019. This bullish trend returned +1.68% to investors.
During the last year QNIFTY had 7 profitable months and 5 loss making months. QNIFTY returned profits in more months than NIFTY-50 index. QNIFTY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Mar 2018, returned -10.03% compared to -6.42% returned by NIFTY-50 index in Sep 2018. QNIFTY and NIFTY-50 index, both had periods of 3 consecutive profitable months. It is interesting to note that both QNIFTY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
If you live for having it all, what you have is never enough.
-- Vicki Robin
QNIFTY 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 surge in QNIFTY's volatility from 24 Oct, 2018 to 8 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 18 Jan, 2019.
Advanced/professional short-term investors should note that QNIFTY has significant positive skewness in it's return distribution. This indicates that investors can expect QNIFTY to recover from drawdowns quickly. Which makes QNIFTY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
NIFTY-50 index has more chance of extreme outcomes than QNIFTY. Therefore, NIFTY-50 must receive a lower allocation than QNIFTY in your portfolio. QNIFTY usually has shorter drawdown period than the NIFTY-50 index.
Based on your interest in QNIFTY you may find it interesting to know that ASTRAZEN is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.
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