Glossary· Benchmark-relative
What is Downside capture?
The share of the index's losses the fund took in months the index fell. Lower is better.
80 means the fund fell only four-fifths as far as the index did. The pair to look for is high upside capture with lower downside capture.
For the formula and the constants behind this figure, see Methodology.
Guides that use Downside capture
2 guides put this term to work.
- Dividend yield funds: do high-dividend stocks make better funds?A value strategy wearing an income costume. Why the dividends land in the NAV rather than your bank account, and why an SWP beats this for cash flow.
- Consumption and FMCG funds: the defensive play that isn't always defensiveThe steadiest earnings in the market, already priced as such — plus a rural and input-cost macro exposure most buyers of a 'defensive' fund never notice.
More on benchmark-relative
How the fund behaved against its index. All computed from 36 monthly returns, so a fund needs about three years of history to show any of them.
- Alpha
- Annualized return above what the fund's market exposure alone would predict.
- Beta
- How hard the fund moves when the index moves. 1 = in step.
- R²
- How much of the fund's movement the benchmark explains, 0–100%.
- Treynor ratio
- Excess return per unit of beta rather than per unit of total volatility.
- Information ratio
- Return above the benchmark, per unit of tracking error.
- Tracking error
- How far the fund's returns typically stray from the benchmark's, annualized.
- Upside capture
- The share of the index's gains the fund captured in months the index rose. 100 = matched it.