1105.5 -6.56 (-0.59%) Buy

Search for alternative investments is on for QNIFTY investors as it performed worse than the broader market

13 min read

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.

[Themes containing QNIFTY]

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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