Profit booking on the minds of MKTCAP301TO350 THEME investors as it performed better than the broader market

Market Cap 301-350 managed to marginally outperform the broader market on Friday. It gained +0.07% to close at 1014.51. On a day when the overall market breadth was 71%, it closed higher than 31% of the market. In comparison, the benchmark NIFTY-50 index closed today at +0.13%.

[Theme constituents]

~MKTCAP301TO350 is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +15.3% for investors.

Trend

Monthly Performance

Alpha (outperformance)

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Volatility

Return distribution

~MKTCAP301TO350 has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Jan, 2018. Over the last 1 year 10 months and 11 days, ~MKTCAP301TO350 underperformed the NIFTY-50 index on 46% days. Which indicates that on days ~MKTCAP301TO350 underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

~MKTCAP301TO350 returned losses on 54% days in the last three months. During this time, it delivered on average -0.28% per day. It delivered it's worst daily return of -5.23%, during this period, on Friday, 28 Sep, 2018. There was initially a bearish trend during this period which started on 18 Sep, 2018 and went on till 1 Oct, 2018. The trend delivered -16.81% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 2 Nov, 2018. This bullish trend delivered +8.62% to investors.

~MKTCAP301TO350 had 5 profitable and 7 loss making months over the last year. During the last year, number of profitable months of ~MKTCAP301TO350 and NIFTY-50 index were the same. ~MKTCAP301TO350 was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -17.06% compared to -6.42% returned by NIFTY-50 index in Sep 2018. ~MKTCAP301TO350 had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -12.94%. It is interesting to note that both ~MKTCAP301TO350 and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

~MKTCAP301TO350 is becoming more volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant surge in ~MKTCAP301TO350's volatility from 17 Sep, 2018 to 12 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 ~MKTCAP301TO350 has significant positive skewness in it's return distribution. This indicates that investors can expect ~MKTCAP301TO350 to recover from drawdowns quickly. Which makes ~MKTCAP301TO350 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 ~MKTCAP301TO350. Therefore, NIFTY-50 must receive a lower allocation than ~MKTCAP301TO350 in your portfolio. ~MKTCAP301TO350 usually has shorter drawdown period than the NIFTY-50 index.

On a general note (since you are interested in ~MKTCAP301TO350), if you are evaluating ~MKTCAP301TO350 as an investment candidate, then you should read about UTINEXT50 which has delivered similar performance and can help diversify your portfolio.