{
  "id": 9949879,
  "title": "Multiple mutual funds, same stocks? Here’s how to check for portfolio overlap",
  "url": "https://urgent.news/2026/09/26/multiple-mutual-funds-same-stocks-heres-how-to-check-for-portfolio",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-26T08:06:08.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/mf/analysis/multiple-mutual-funds-same-stocks-heres-how-to-check-for-portfolio-overlap/slideshow/134500540.cms"
  },
  "original_language": "en",
  "account": "Investing in multiple mutual funds can give a sense of portfolio diversification. However, examining the holdings may reveal that several funds share many of the same top 10 stocks, a phenomenon called portfolio overlap. While it may seem that spreading investments across multiple funds provides better risk management, it could actually lead to concentrated exposure to identical stocks. Here's how to detect portfolio overlap.\n\nPortfolio overlap refers to the degree of similarity in stock holdings among two or more mutual funds. The higher the overlap, the less diversified the overall portfolio. Overlap occurs because many funds invest in similar assets as they are benchmarked to the same indices. For example, Indian large-cap funds are all benchmarked to the Nifty 50 or similar indices, leaving a limited pool of liquid, investable large-cap stocks. As a result, fund managers in different funds often agree on the same dominant companies.\n\nTo measure overlap between two mutual funds, list the stocks in each, assign weights, and calculate the percentage of common holdings. A 30-35% overlap is typical, but anything above 50% is cause for concern. When the overlap exceeds 70%, the funds essentially mirror each other, providing little added value. The most worrying scenario is when the common stocks experience a decline, as the loss is multiplied across multiple funds, hitting the portfolio significantly more than if the funds had different holdings.\n\nPortfolio overlap also means paying multiple expense ratios for the same exposure that could have been achieved through a single fund. Before adding a new fund, compare its top 10-15 holdings with those already owned. If the new fund's top holdings are identical to the existing ones, it is not adding significant value. Be mindful when combining funds within the same category, as some overlap is expected and not necessarily a cause for concern. If you hold an index fund and a large-cap active fund, they will share many stocks, which is normal. The key is whether the combined funds achieve different objectives.",
  "summary": "Portfolio overlap can reduce the diversification investors expect from holding multiple mutual funds. Identical top holdings, particularly across large-cap schemes, can concentrate risk, duplicate expenses and limit portfolio benefits despite owning several funds.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}