Downside and upside capture ratios

Mon, 18 May 2026 00:00:00 +0000

Downside and upside capture ratios measure how much of the benchmark’s down moves and up moves a mutual fund captures, providing insight into the fund’s asymmetric performance characteristics.

Formulas

Upside capture = Scheme return in up months / Benchmark return in up months × 100.
Downside capture = Scheme return in down months / Benchmark return in down months × 100.

Interpretation

Upside capture

>100: Fund outperforms benchmark in up months.
=100: Fund matches benchmark in up months.
<100: Fund underperforms benchmark in up months.

Downside capture

<100: Fund declines less than benchmark in down months (defensive).
=100: Fund matches benchmark in down months.
>100: Fund declines more than benchmark in down months.

Ideal scenario

The ideal active mutual fund:

Upside Capture on WebNotes

Downside and upside capture ratios

Formulas

Interpretation

Upside capture

Downside capture

Ideal scenario