Worst Case Loss on WebNoteshttps://v2.webnotes.in/tags/worst-case-loss/Recent content in Worst Case Loss on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000Maximum drawdown in mutual fundshttps://v2.webnotes.in/max-drawdown-mutual-fund/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/max-drawdown-mutual-fund/<p><strong>Maximum drawdown (MDD)</strong> is the maximum observed loss from a peak NAV to a subsequent trough NAV, before a new peak is achieved, over a specified period. It represents the worst-case scenario for an investor who happened to invest at the highest point and exited at the lowest point in the measurement window. Maximum drawdown is expressed as a negative percentage and is one of the most intuitive and investor-relevant risk metrics, unlike standard deviation, it directly answers the question: &ldquo;What is the worst I could have lost?&rdquo;</p>