What capture ratios measure
A fund's return over three years hides how it got there. Capture ratios split the period in two. Take every month in which the fund's benchmark rose: the upside capture is the fund's average return in those months, as a percentage of the benchmark's. Do the same for the months in which it fell, and you have the downside capture.
A fund with 105 upside and 95 downside gains 5% more than the index when it rises and loses 5% less when it falls. Our figures use the last 36 completed months to September 2026, each fund's own benchmark (the Total Return index of its category), and the geometric average of the monthly returns. We show Direct Growth plans only.
The categories
| Category | Funds | Avg upside | Avg downside | Up ÷ down | Both better than benchmark |
|---|---|---|---|---|---|
| Multi cap | 24 | 111.8% | 95.0% | 1.18 | 16 |
| Small cap | 27 | 90.6% | 78.7% | 1.15 | 6 |
| Large & mid cap | 29 | 111.0% | 98.4% | 1.13 | 14 |
| Flexi cap | 37 | 104.1% | 92.9% | 1.12 | 16 |
| Value | 21 | 103.4% | 92.4% | 1.12 | 9 |
| Focused | 28 | 103.2% | 93.0% | 1.11 | 11 |
| Mid cap | 29 | 98.1% | 89.7% | 1.09 | 11 |
| Large cap | 31 | 102.0% | 94.3% | 1.08 | 15 |
| ELSS | 48 | 101.5% | 96.0% | 1.06 | 18 |
"Both better" counts funds with upside above 100 and downside below 100 against their benchmark. Small cap funds use the Nifty Smallcap 250 TRI, mid cap funds the Nifty Midcap 150 TRI, large cap funds the Nifty 100 TRI and the others mostly the Nifty 500 TRI.
Three things stand out.
- Every category's average downside is under 100. On average, equity funds fell less than their indices in down months. Cash and defensive holdings can explain part of that, since the benchmark is a fully invested index.
- Small cap funds caught the least of both. They gave up 21% of the benchmark's falls and 9% of its rises. Only 6 of 27 beat the benchmark on both counts.
- Multi cap funds caught the most upside. Their average of 111.8% is the highest in the table, with 16 of the 24 better than the benchmark in both directions.
Large cap, the narrowest edge
Large cap funds averaged 102.0 upside and 94.3 downside, and 15 of 31 funds were better on both. That is a thin average edge over a benchmark made of the 100 largest companies, and a reminder of how little room active large cap funds have. Our October large cap fund returns covers how they have done against the index.
Reading a capture ratio the wrong way
Up ÷ down above 1 is a good sign, not a promise. It describes 36 months, and those months were not neutral: the market's fall this year makes downside capture look better for any fund holding cash or defensive stocks. In a long rally the same funds would lag.
A fund can have a high upside and a high downside. In our data 5 of the 48 ELSS funds had upside under 100 and downside over 100: they gave less in good months and more in bad ones.
The benchmark has to fit. A fund compared with a poorly matched index can look good or bad for no reason. Until 7 October 2026 we measured large & mid cap funds against the Nifty Midcap 150 TRI and left them out of this table; on that basis they averaged 85.5 upside and 80.8 downside. Against the Nifty 500 TRI they average 111.0 and 98.4.
Past capture is not future capture.
Where to go from here
Capture ratios sit next to the other measures on a fund's page: alpha, beta, Sharpe and tracking error. Our Sharpe ratio post covers risk-adjusted return across categories, and the screener is the place to compare individual funds. The guide to rolling vs trailing returns explains why a single window can mislead.
Frequently asked questions
What are upside and downside capture ratios?
They compare a fund's return with its benchmark's in the benchmark's rising months (upside) and falling months (downside). An upside capture of 110 means the fund gained 10% more than the index in up months; a downside capture of 90 means it lost 10% less in down months. Ours use 36 monthly returns against each fund's benchmark.
Which equity category has the best capture profile?
Multi cap funds. The 24 with a capture figure averaged 111.8% upside and 95.0% downside, a ratio of 1.18. Small cap funds came next at 1.15, with an upside of 90.6% and a downside of only 78.7%.
What share of funds capture more upside than downside?
Among 274 Direct plans in nine categories with a capture figure, 116 (42%) had upside above 100 and downside below 100. Multi cap had the highest share, 16 of 24; small cap the lowest, 6 of 27.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
Keep reading
Equity fund beta: 199 of 275 move less than their index
The median diversified equity fund had a 3-year beta of 0.96 to September 2026. Multi and large & mid caps sat at 1.00, small caps 0.86.
Mid and small caps vs the Nifty 50, every year since 2017
Midcap 150 and Smallcap 250 each beat the Nifty 50 in five of nine years from 2017 to 2025. In 2026 so far small caps are up 7.3%, the Nifty 50 down 12.8%.
Sortino ratios: the same top ten as Sharpe, scaled up
Across 264 diversified equity funds the median 3-year Sortino ratio is 0.53 and 17 exceed 1. Invesco India Mid Cap leads at 1.30; the order is almost Sharpe's.