Market Capture Ratio


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Scheme Name AMC Name Benchmark Name Launch Date Scheme Return (%) Up Market Capture Ratio (%) Down Market Capture Ratio (%) Capture Ratio
ICICI Pru BlueChip Gr ICICIMF NIFTY 100 TRI 05-05-2008 22.4 103.00 75.00 1.37

Market rallies and crashes are both realities of equity investing. A mutual fund scheme which outperforms both in up markets and down markets is likely to give superior risk adjusted returns and outperform other funds in the long term. Performance in different market conditions is measured by a set of metrics called market capture ratios. In this tool we see the performance of a fund both in up-market (months in which the benchmark index was up) and down market (months in which benchmark index was down). The ratio of the average monthly returns of a scheme versus average monthly returns of the benchmark when the market was up is known as Up-market Capture Ratio. The ratio of the average monthly returns of a scheme versus average monthly returns of the benchmark when the market was down is known as Down-market Capture Ratio.

High Up Market Capture Ratio (more than 100%) is good, because it means the fund manager is able to generate higher than market benchmark returns when market is rising. Low Down Market Capture Ratio (less than 100%) is good, because it means the fund manager is able to provide some downside risk protection when market is falling. Negative Down Market Ratio is very good because it means that even in periods when the market fell, the fund on an average gave positive returns, which is always good for investors.

Capture Ratio is the ratio of Up Market Capture Ratio and Down Market Capture Ratio. High Capture Ratio (more than 1) is good because it implies good risk adjusted returns. Negative Capture Ratio is also good, provided the negative is on account of Down Market Capture Ratio.

Disclaimer : We have gathered all the data, information, statistics from the sources believed to be highly reliable and true. All necessary precautions have been taken to avoid any error, lapse or insufficiency; however, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. We cannot be held liable for any loss arising directly or indirectly from the use of, or any action taken in on, any information appearing herein. The user is advised to verify the contents of the report independently.

Returns less than 1 year are in absolute (%) and greater than 1 year are compounded annualised (CAGR %). SIP returns are shown in XIRR (%).

The Risk Level of any of the schemes must always be commensurate with the risk profile, investment objective or financial goals of the investor concerned. Mutual Fund Distributors (MFDs) or Registered Investment Advisors (RIAs) should assess the risk profile and investment needs of individual investors into consideration and make scheme(s) or asset allocation recommendations accordingly.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in the future. Investors should always invest according to their risk profile and consult with their mutual fund distributors or financial advisor before investing.