Don't give up on MKTCAP1TO50 THEME now, it gave a fairly good return

~MKTCAP1TO50 ranked better than it's peers today. On a longer term basis, investors in Market Cap 1-50 made +0.05% per day. Tuesday's performance of +0.38% was a outperformance compared to it's daily average.

[Theme constituents]

~MKTCAP1TO50 showed a bearish trend over the last 3 months. During this period ~MKTCAP1TO50 delivered -4.69% and saw a maximum drawdown of -12.35%. There were 2 short signals during this period that returned a cumulative of +4.81% to investors.

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Monthly Performance

Alpha (outperformance)

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Return distribution

~MKTCAP1TO50 has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 29 Sep, 2016 to 2 Nov, 2017. Over the last 2 years and 3 months, ~MKTCAP1TO50 outperformed the NIFTY-50 index on 55% days.

During the last three months ~MKTCAP1TO50 delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.41%) was on Friday, 12 Oct, 2018. While it's worst loss in the same period (of -3.82%) was on Friday, 5 Oct, 2018. The longest stort-term trend during this period was 6 profitable days, which started on 11 Dec, 2018 and went on till 18 Dec, 2018. This bullish trend returned +5.73% to investors.

The last 12 months saw ~MKTCAP1TO50's investors making profits in 6 months and incurring losses in 6 months. During the last year, ~MKTCAP1TO50 and NIFTY-50 index had the same number of profitable months. ~MKTCAP1TO50 was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -8.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~MKTCAP1TO50 and NIFTY-50 index, both had periods of 2 consecutive profitable months. It is interesting to note that both ~MKTCAP1TO50 and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

To beat the market you'll have to invest serious bucks to dig up information no one else has yet.
-- Merton Miller

~MKTCAP1TO50 is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant surge in ~MKTCAP1TO50's volatility from 19 Sep, 2018 to 5 Oct, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 21 Sep, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that ~MKTCAP1TO50 has significant positive skewness in it's return distribution. This indicates that investors can expect ~MKTCAP1TO50 to recover from drawdowns quickly. Which makes ~MKTCAP1TO50 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 ~MKTCAP1TO50. Therefore, NIFTY-50 must receive a lower allocation than ~MKTCAP1TO50 in your portfolio. ~MKTCAP1TO50 usually has shorter drawdown period than the NIFTY-50 index.

Based on your interest in ~MKTCAP1TO50 you may find it interesting to know that RESPONIND is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.