# Capture Ratios (Upside and Downside)

How much of the market’s rises and falls a fund captures.

Source data: AMFI daily NAV (17,900+ schemes) + Nifty benchmark indices. Last updated: 2026-07-02. Interactive tool: https://mfpro.tigzig.com

## What is Capture Ratio?



Capture Ratio measures how much of the benchmark's gains (upside) and losses (downside)
 a fund participates in. It's split into two numbers:




- **Upside Capture:** On days when the benchmark goes up, what percentage
 of that gain does the fund capture? An upside capture of 110% means the fund gains
 10% more than the market on up days.

- **Downside Capture:** On days when the benchmark goes down, what percentage
 of that loss does the fund suffer? A downside capture of 85% means the fund only loses
 85% of what the market loses on down days.



The ideal fund has high upside capture (participates in gains) and low downside capture
 (protected from losses).

 


## How We Compute It


 
 Upside Capture = (Avg fund return on days benchmark > 0) / (Avg benchmark return on days benchmark > 0) x 100

Downside Capture = (Avg fund return on days benchmark < 0) / (Avg benchmark return on days benchmark < 0) x 100
 

Both use **daily returns** (day-over-day NAV percentage change). We separate all
 trading days into "up days" (benchmark return > 0) and "down days" (benchmark return 0) > 0
 THEN ROUND(
 AVG(fund_ret) FILTER (WHERE bench_ret > 0)
 / AVG(bench_ret) FILTER (WHERE bench_ret > 0)
 * 100, 2)
 ELSE NULL END AS upside_capture,

 CASE WHEN AVG(bench_ret) FILTER (WHERE bench_ret 0):


Nifty avg: (1.20 + 0.50 + 0.90 + 0.30 + 1.80 + 0.60) / 6 = 0.883%
Fund avg: (1.35 + 0.70 + 0.85 + 0.45 + 2.10 + 0.40) / 6 = 0.975%

 Upside Capture = 0.975 / 0.883 x 100 = **110.4%**


Down days (benchmark 100, Downside 100, Downside > 100:** Aggressive fund. Amplifies both gains and losses (high beta).

- **Upside 100:** The worst case. Fund misses gains but absorbs full losses.



**Capture Ratio vs Beta:** Beta tells you the average sensitivity (one number).
 Capture Ratio separates it into up and down - a fund can have beta of 1.0 but still have
 asymmetric capture (e.g., 110% up, 90% down) if it performs differently in bull vs bear markets.

 


## Important Notes





- Computed using **daily returns** over the selected evaluation period.

- Benchmark: Nifty 50 (INDEX_NIFTY50).

- Days where the benchmark return is exactly 0 are excluded from both calculations.

- Minimum 60 daily observations required.

## Related metrics

More Risk Metrics methodology from the MFPRO analytics tool:

- [Beta and R-Squared](/mfpro/beta-and-r-squared)

- [Alpha and t-statistic](/mfpro/alpha-and-t-stat)

- [Sharpe Ratio](/mfpro/sharpe-ratio)

- [Sortino Ratio](/mfpro/sortino-ratio)

- [Tracking Error and Information Ratio](/mfpro/tracking-error-information-ratio)

- [Win Rate](/mfpro/win-rate)

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Source: https://www.tigzig.com/mfpro/capture-ratio