Maximum drawdown
The largest fall from a previous high to a subsequent low.
What it measures
Maximum drawdown is the deepest peak-to-trough fall in NAV. It is the loss an investor who bought at the worst possible moment would have seen on paper before recovery.
Formula
drawdown_t = NAV_t ÷ highest NAV up to t − 1; maximum drawdown = most negative drawdown
How MFIC calculates it
From daily NAVs. MFIC shows the maximum over the full history, over the last 5 and 10 years (so schemes with different history lengths compare fairly), the current drawdown, the number of falls deeper than 5%, and the days taken to recover from the worst one.
How to read it
A smaller maximum drawdown means shallower falls in that history. Recovery time matters as much as depth: a 30% fall that recovers in 6 months is a different experience from one that takes 3 years.
Limitations
It is a single worst episode; a scheme that has not been through a severe market fall may show a small number simply because of timing.
Maximum drawdown by category today
Spread of maximum drawdown across Regular-plan schemes in each category, calculated by MFIC from AMFI NAVs as of 1 Oct 2026. The middle half of schemes falls between the 25th and 75th percentiles.
| Category (Regular plans) | Schemes | 25th percentile | Median | 75th percentile |
|---|---|---|---|---|
| Large Cap | 29 | −17.6% | −18.7% | −19.8% |
| Large & Mid Cap | 26 | −19.0% | −20.0% | −21.6% |
| Flexi Cap | 27 | −19.1% | −20.5% | −23.4% |
| Multi Cap | 8 | −20.0% | −21.6% | −24.0% |
| Mid Cap | 22 | −20.7% | −21.6% | −23.0% |
| Small Cap | 21 | −23.1% | −24.4% | −25.7% |
| ELSS | 31 | −18.1% | −18.9% | −22.3% |
| Focused | 22 | −18.7% | −20.4% | −22.0% |
| Value | 17 | −17.2% | −18.7% | −20.8% |
| Aggressive Hybrid | 27 | −13.3% | −15.1% | −16.5% |
| Balanced Advantage | 20 | −9.1% | −10.3% | −12.0% |
| Index Fund | 40 | −16.7% | −17.9% | −23.7% |
Use it in MFIC
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Related: Calmar ratio · Rolling returns · Standard deviation (volatility) · Methodology