PortfolioOverlap
Compare the holdings of two mutual funds side by side. Identify common stocks, unique positions, and overlap percentages to build a truly diversified portfolio.
Understanding Portfolio Overlap in Mutual Funds
Portfolio overlap occurs when two or more mutual fund schemes hold the same stocks in their portfolios. For example, if you invest in two different large-cap funds, both might hold significant positions in Reliance Industries, HDFC Bank, and Infosys. High overlap means you are effectively concentrating your money in the same set of stocks through different fund wrappers, which reduces the diversification benefit of holding multiple funds. Understanding overlap is essential for building a well-diversified mutual fund portfolio.
This tool analyzes the latest disclosed holdings of any two mutual fund schemes and calculates the percentage of common stocks, the weight of overlapping holdings, and lists both shared and unique positions. A high overlap percentage (above 50-60%) suggests that holding both funds may not add meaningful diversification. Investors can use this information to restructure their portfolio by replacing highly overlapping funds with schemes that have distinct investment styles or market-cap exposure. Acornia, as a mutual fund distributor, provides this tool to help you analyze and explore portfolio construction strategies.
How to Use This Tool
- Search and select two mutual fund schemes whose portfolios you want to compare.
- Review the overlap percentage, common stocks, and weight distribution displayed in the results.
- Examine the unique holdings in each fund to understand what differentiated exposure each scheme provides.
Frequently Asked Questions
Q: What is considered a high portfolio overlap?
Generally, an overlap above 50% is considered significant. If two funds share more than 60-70% of their holdings by weight, holding both offers limited diversification benefit. However, context matters -- two index funds tracking the same index will have near 100% overlap, while a large-cap and a mid-cap fund will naturally have minimal overlap due to different investment universes.
Q: Does low overlap automatically mean good diversification?
Not necessarily. Low stock-level overlap is a positive sign, but true diversification also depends on sector allocation, market-cap distribution, and correlation between the funds. Two funds with zero stock overlap could still be concentrated in the same sector (e.g., both heavily invested in banking stocks through different companies). Always consider multiple dimensions of diversification.
Q: How current is the holdings data used in this analysis?
The tool uses the most recently disclosed portfolio holdings as published by the respective AMCs. SEBI mandates that mutual funds disclose their complete portfolio on a monthly basis. However, since fund managers actively manage portfolios, actual current holdings may differ slightly from the last disclosed data. Use this tool as a directional indicator rather than a precise real-time snapshot.
Worried about portfolio concentration? Let us review your holdings.
Acornia Investment Services Pvt Ltd (ARN: 192746) is an AMFI-registered mutual fund distributor. All investments are subject to market risks. Please read all scheme-related documents carefully. The information on this website is for general informational and educational purposes only and does not constitute financial advice or a recommendation.