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Finance


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Drawdown


An act by which an amount of money is used after it has been made available for a particular purpose. For example, an income drawdown plan allows an individual to keep his money invested after retirement while he regularly draws income from it.

In a different context, drawdown refers to a reduction of the value of an asset/ investment/ account/ fund below its maximum point. More specifically, it is the percentage loss that is measured from the highest value of an investment. For example, a fund that has a drawdown is one whose value has dropped below its highest point, and as a result it would be currently in debt.


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