Understanding Market Capture Ratio

Ratin DSIJ / 05 Feb 2026 / Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

I came across the term ‘market capture ratio’ recently.

I came across the term ‘market capture ratio’ recently. Could you explain what it means in simple words? - Sanjokta Malusare [EasyDNNnews:PaidContentStart]

Editor Responds : The market capture ratio is a simple way to understand how a Mutual Fund performs compared to the overall market during different phases. It shows whether a fund is able to capture more of the market’s gains when markets rise and how much it limits losses when markets fall. There are two parts to it. The upside capture ratio measures how well a fund performs when the market is moving up. A ratio above 100 means the fund has done better than the market in rising conditions.

The downside capture ratio shows how the fund behaves during market declines. A lower number here is better, as it indicates the fund falls less than the market. Together, these ratios help investors judge a fund’s consistency and risk management. Ideally, investors should look for funds with a higher upside capture and a lower downside capture over the long-term.

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

To read the entire article, you must be a DSIJ magazine subscriber.

[EasyDNNnews:UnPaidContentEnd]