Muthoot Group THEME

7111.13 +121.83 (+1.71%) Buy

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MUTHOOTGRP THEME investors rewarded by market outperformance

13 min read

Muthoot Group was among the best performers today. It returned +1.71% to close at 7111.13. During the last week it returned +5.89%.

[Theme constituents]

Buy-and-Hold investors in ~MUTHOOTGRP experienced a maximum drawdown of -21.76% over the last three months. It lost -2.34% during this down trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.


~MUTHOOTGRP has been outperforming the NIFTY-50 index in recent time. Over the last 2 years 11 months and 13 days, ~MUTHOOTGRP outperformed the NIFTY-50 index on 51% days.

During the last three months ~MUTHOOTGRP was mostly loss making and delivered on average -0.0% per day. It's best return during this period (of +8.85%) was on Friday, 7 Dec, 2018. While it's worst loss in the same period (of -5.06%) was on Monday, 24 Sep, 2018. There was initially a bearish trend during this period which started on 3 Oct, 2018 and went on till 8 Oct, 2018. The trend delivered -8.97% losses to investors. This was followed by a bullish trend that started on 30 Oct, 2018 and ended on 5 Nov, 2018. This bullish trend delivered +5.71% to investors.

~MUTHOOTGRP had 8 profitable and 4 loss making months over the last year. ~MUTHOOTGRP was profitable in more months than NIFTY-50 index. ~MUTHOOTGRP significantly outperformed NIFTY-50 index in Apr 2018, when it returned +13.25% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. ~MUTHOOTGRP had a longer winning streak of profitable months than NIFTY-50 index. It went up in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered +13.43%. It is interesting to note that both ~MUTHOOTGRP and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"Financial crises are like fireworks: they illuminate the sky even as they go pop.

~MUTHOOTGRP 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 fall in ~MUTHOOTGRP's volatility from 12 Oct, 2018 to 27 Nov, 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 ~MUTHOOTGRP has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

On a general note (since you are interested in ~MUTHOOTGRP), three instruments that deserve special mention are ~MKTCAP201TO250, BAJFINANCE and DMART. They have all outperformed the market and must be closely watched for investment opportunities.

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