Downside capture: how much of the market's fall a fund takes
Aeterna Wealth · figures from our fund data, updated 12 Nov 2026
Downside capture compares a fund's returns in the months its index fell with the index's own returns in those months. A downside capture of 80% means that when the index fell 10%, the fund fell about 8% on average. Today the median large cap fund's is about 95%, the median small cap fund's 81% (each against its own index). Lower is better, as long as the fund still keeps up when markets rise.
Why it matters
Losses hurt more than gains help: a 30% fall needs a 43% rise to recover. A fund that falls less recovers sooner, and is easier to hold on to, which is where most investors lose money.
Read it with upside capture
- Upside capture is the same measure for rising months.
- Up 100%, down 80%: the fund kept pace on the way up and fell less: the ideal.
- Up 80%, down 80%: just a lower-risk fund; it gives up as much in rises as it saves in falls.
Common questions
What is a good downside capture?
Below 100% means the fund fell less than its index in falling months; below 85% is notably defensive. Compare within a category.
Is it measured monthly?
Yes, on our site: monthly returns over the last 3 years.
Can a fund have low downside capture and still lose money?
Yes. It falls less than the index, not never.
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General information, not investment or tax advice for your situation. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
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