Downside capture ratio in mutual funds

Tue, 12 May 2026 00:00:00 +0000

The downside capture ratio measures how much of a benchmark index’s negative return a mutual fund captures when the benchmark posts a loss. It is computed as the ratio of the fund’s average return during periods when the benchmark is negative, to the benchmark’s average return during those same periods, expressed as a percentage. A ratio below 100 means the fund falls less than the benchmark in down periods, an indicator of downside protection.

Downside Capture Ratio on WebNotes

Downside capture ratio in mutual funds