The downside risk of fund refers to the risk value that the future fund trend may be lower than the target price expected by analysts or investors.

Downside risk is a widely concerned risk measurement index. Common semi-variance, VaR, ES indicators, etc. All belong to the category of downside risk indicators. The downward risk calculation formula is defined as follows:

Where Rf is the risk-free interest rate during the evaluation period, the downside risk only counts the standard deviation of the part with the yield less than the risk-free interest rate, and T is the number of periods with the yield less than the risk-free interest rate.