Definition, Meaning & Synonyms
draw-down
noun
/ˈdrɔː daʊn/
Definition
A reduction in the level or balance of something, particularly in financial contexts.
Examples
- The portfolio experienced a significant draw-down during the market crash.
- The fund’s draw-down was closely monitored by investors.
- After the rapid draw-down, the investors decided to reassess their strategy.
Meaning
In finance, ‘draw-down’ typically refers to the amount of an investment loss from its highest value to the current value. It represents a decline in the value of an asset, indicating a decrease in capital.
Synonyms
- Decline
- Reduction
- Withdrawal
- Diminution
