Capture ratios in mutual funds

Tue, 19 May 2026 00:00:00 +0000

Capture ratios are mutual fund performance metrics that measure how much of a benchmark’s upside (Upside Capture Ratio, UCR) and downside (Downside Capture Ratio, DCR) a scheme captures over a given period. The pair of metrics provides insight into active-fund performance asymmetry: ideally, an active fund captures more than 100% of benchmark upside and less than 100% of benchmark downside, indicating skilful asymmetric positioning.

For Indian active-fund investors, capture ratios complement Sharpe ratio and Sortino ratio by separating fund behaviour in up vs down markets, which the aggregated risk-adjusted metrics blend.

Performance on WebNotes

Capture ratios in mutual funds