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Mutual Fund Overlap Comparisons

Side-by-side quantitative portfolio analysis of India's most held mutual fund pairs. Identify hidden stock duplication, sector concentration, and whether holding both funds creates fee drag.

12Popular Pairs Analyzed
10Fund Categories Covered
32.8%Average Common Overlap
AMFI Disclosed100% Statutory Holdings
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Why Measuring Mutual Fund Overlap Matters

Many retail investors assemble mutual fund portfolios thinking that buying 5 or 6 different schemes gives them superior diversification. In reality, large-cap, flexi-cap, and ELSS tax-saving funds often hold the exact same index blue chips (such as HDFC Bank, ICICI Bank, Reliance Industries, and Infosys).

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Double Active Fees

You pay active fund management fees (0.6%–1.2% TER) on identical underlying stocks without gaining any risk reduction.

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Illusion of Safety

If two funds overlap by 50%+, a downturn in key banking or IT holdings hits both schemes simultaneously.

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True Effective Stocks (ENS)

Our quantitative engine uses Herfindahl-Hirschman math to show your true effective company count.

The Mutual Fund Overlap Spectrum: How to Interpret Any Score

Overlap RangeRating & HealthPortfolio CharacterRecommended Investor Action
0% to 20%🟢 ComplementaryDistinct market capitalizations, sectors, or investing styles (e.g. Small Cap + Large Cap).Keep Both: Provides genuine risk reduction and multi-cap expansion.
20% to 45%🟡 Moderate OverlapStandard overlap between related categories (e.g. Flexi Cap + Large & Mid Cap).Monitor Top 5: Acceptable if manager alpha deviates. Check single-stock concentration.
45% to 70%🟠 High DuplicationSignificant redundancy. Holding both schemes cancels active manager alpha.Consolidate: Pause SIPs in the higher-cost or underperforming scheme.
Above 70%🔴 Benchmark RedundantExtreme duplication or index cloning (e.g. two Large Cap or Index funds).Immediate Switch: Replace with a direct low-cost index fund (TER ~0.10%).
ACADEMIC RIGOR

The Quantitative Mathematics Powering Our Analyzer

We calculate portfolio overlap by measuring the minimum common allocation between any two schemes across statutory AMFI portfolio disclosures:

PAIRWISE OVERLAP FORMULA
Overlap(A,B)=∑i=1Nmin⁡(WA,i,WB,i)\text{Overlap}(A, B) = \sum_{i=1}^{N} \min\left(W_{A, i}, W_{B, i}\right)

Sum of minimum common weights across all intersecting securities.

EFFECTIVE NUMBER OF STOCKS (ENS)
ENS=1∑i=1Nwi2\text{ENS} = \frac{1}{\sum_{i=1}^{N} w_i^2}

Inverse of the Herfindahl-Hirschman Index (HHI) concentration score.

4-Step Action Checklist: How to Choose Between Two Overlapping Funds

1

Audit Active Share vs. Nifty 50

Check how much each scheme overlaps with the index. If an active fund charges 1.2% TER but has 80% overlap with Nifty 50, it is a closet index fund.

2

Compare 3Y & 5Y Rolling Alpha

Do not rely on point-to-point 1-year returns. Look for consistent rolling outperformance across market cycles.

3

Size the TER Expense Difference

A 0.30% to 0.60% difference in annual expense ratios compounds to lakhs of rupees over a 15-year SIP horizon.

4

Consolidate & Cap Your Portfolio

Keep your total mutual fund count capped at 4 to 6 schemes. More funds do not add diversification—they only add fee drag.

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