What is down capture?
The mirror of up capture: look only at months the benchmark fell. Down capture is what percentage of that loss the fund suffered - below 100% means the fund cushioned the decline, above 100% means it fell harder than the market.
Down Capture = Rp,down / Rm,down × 100
Lower is better here - unlike almost every other metric on this page, a smaller number is the good outcome.
Real comparison across 6 funds
CHART
3Y Down Capture Ratio - 6 real funds
All 6 funds fall less than their benchmark in down months (all below 100%) - genuine downside cushioning, not just a coincidence of the sample.
Funds compared: Parag Parikh Flexi Cap · DSP Value · ICICI Prudential Value · SBI Focused · Parag Parikh ELSS Tax Saver · SBI Multicap
Reading the spread
Across these 6 funds, down capture runs from 56.5 (SBI Focused) to 71.9 (ICICI Prudential Value), a gap of 15.4. The middle value is 65.2, with 3 of 6 above it. Taking lower as better, SBI Focused leads and ICICI Prudential Value trails on this measure alone.
How to use it in practice
Down capture shows how much of the benchmark’s losses a fund took in falling periods. A value below 100 means the fund fell less than the index in down markets, which is what you want from a defensive manager. It is the clearest single number for how a fund behaves when things go wrong. Compare it with up capture to see what the fund gives up on the way up for that protection.
Common mistakes
Low down capture can come simply from holding a lot of cash, which also drags returns in rising markets, so check what the fund gives up. It also depends on the window: if the period had few real falls, the number says little. Use a window that includes at least one meaningful correction before drawing a conclusion.
Frequently asked questions
What is a good down capture ratio?
Below 100 is good, because it means the fund lost less than its benchmark in falling periods. The lower the figure, the better the protection, provided the fund did not give up too much in rising markets.
Does low down capture mean a fund never loses money?
No. A down capture of 80 means the fund fell 80% as much as the benchmark in down periods. It still lost money, only less.
What can distort the down capture ratio?
A window with very few falling periods, or holding a large cash balance. Always check the window covers at least one real correction.
WHAT THIS MEANS FOR YOU The best combination is low down capture with high up capture - a fund that falls less but still keeps up in rallies. Check both together, never one alone. See Up Capture Ratio.
METHODOLOGY Computed over a trailing 3-year window as of 2026-08-31, using monthly return periods where the benchmark was negative. Data: Punji risk analytics. Not investment advice.