Strength of Nifty50 Performance
Strength of Nifty50 (SoN) is a quarterly issued recommendations based on EVM with stocks selected from the Nifty50 Index constituents. To achieve the quarterly recommendations schedule EVM is tailored to use TTM (trailing twelve month) & quarterly results data.
SoN is created as an alternative to NIFTY50 ETF or Index Funds. The goal of these recommendations is to beat the index returns over 3-5 year period. Back test results have shown that while the equal weighted hypothetical portfolio does not beat the index consistently, over a period of time, the returns are better. Being a quarterly recommended product, the volatility seems high, but is mostly in line with the index volatility.
NOTE
The returns below are calculated for a hypothetical equal-weighted portfolio of all our recommendations for every quarter. We use end-of-the day Adjusted lose price as on the day of our recommendation to calculate the returns (both buy and sell). If SELL recommendation is not yet released, we use the last known price of the stock.
Snapshot of Back Test Results
PARTICULAR | VALUE | |
|---|---|---|
| Num of Qtrs | 37 | |
| Num of Qtrs with +V Returns | 28 | i.e. 76% of total number of quarters |
| Num of Qtr with Index Beating Returns | 29 | i.e. 78% of total number of quarters |
| Average Returns Per Quarter (In the backtest period) | 6.71% | |
| Average NIFTY50 Returns Per Quater (In the backtest period) | 3.42% | |
| Worst Performance Qtr | FY2019-20 Q4 | |
| Worst Performance Returns | -24.11% | |
| Best Performance Qtr | FY2020-21 Q3 | |
| Best Performance Returns | 23.13% |
