Investing

Mutual Fund Overlap Checker

Stock Portfolio Weight Adjuster

Sum A: 45.1% | Sum B: 41.6%
HDFC BankMin Overlap: 8%
Fund A9.5%
Fund B8%
Reliance IndustriesMin Overlap: 8.2%
Fund A8.2%
Fund B9%
ICICI BankMin Overlap: 5.5%
Fund A7.4%
Fund B5.5%
InfosysMin Overlap: 6%
Fund A6%
Fund B6.8%
TCSMin Overlap: 2.1%
Fund A4.5%
Fund B2.1%
ITC LimitedMin Overlap: 3.8%
Fund A3.8%
Fund B4.2%
L&TMin Overlap: 1%
Fund A3.2%
Fund B1%
SBIMin Overlap: 2.5%
Fund A2.5%
Fund B5%

Portfolio Overlap

37.1%

holding duplication score

ℹ️ Moderate Overlap. Some stock duplication is normal in large cap equity portfolios.

Stock weight allocation comparison

What to do next

Based on your Mutual Fund Overlap Checker, here are the tools you should try next:

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Demat & Brokerage Compare

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Portfolio Holding Overlap

Overlap % = Sum( Min(Weight_A_i, Weight_B_i) )

Sum of the lower weights of common stocks held in both mutual funds. Higher overlap reduces diversification.

Worked Example: Overlap between two large cap funds

For common stocks like HDFC Bank (8.0% vs 9.5%) and Reliance (9.0% vs 8.2%), overlap contribution is **8.0% + 8.2% = 16.2%**. Total portfolio overlap is **44.0%**.

Portfolio Overlap: The Illusion of Diversification in Piyush's Portfolio

Piyush held five different large-cap mutual funds. He felt secure, believing his risk was highly diversified across five different fund managers. Then he ran his portfolio through an overlap checker.

He discovered that Fund A and Fund B had a portfolio overlap of 72%. Both funds held the exact same stocks in nearly identical proportions — HDFC Bank, Reliance, ICICI Bank, and Infosys. Piyush wasn't diversified; he was just paying multiple active management fees for the same underlying holdings.

Portfolio overlap occurs when different mutual funds hold the same stocks. Owning multiple funds in the same category (e.g. three active large-cap funds) rarely adds diversification. It simply increases clutter and fee drag.

A healthy portfolio should have low overlap (ideally below 30% between funds). Balance your large-cap fund with mid-cap, small-cap, or international funds to ensure genuine diversification across market capitalizations and sectors.

Frequently Asked Questions

What is portfolio overlap in mutual funds?

Portfolio overlap is the percentage of common stock holdings shared between two mutual fund schemes. It measures how similar the portfolios of the two funds are.

How much overlap is acceptable in a portfolio?

An overlap below 30% is considered healthy and provides good diversification. Overlap above 50% indicates that the funds are highly duplicated and holding both offers very little additional risk mitigation.

Does buying multiple large-cap funds reduce risk?

Usually no. Most active large-cap funds in India track the same Nifty stocks, leading to high overlap (often 60% or higher). To diversify, pair a large-cap fund with mid-cap, small-cap, or international funds.

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