Mutual Fund Overlap Calculator India

Q: Why do most Indian large-cap funds hold the same stocks?

This is caused by SEBI's mutual fund categorisation rules (October 2017). Large-cap funds must invest at least 80% in the top 100 companies by market capitalisation. Since the top 10-15 companies make up a disproportionate share of market cap, every large-cap fund ends up holding the same stocks. A single NIFTY 50 index fund achieves the same result for far less cost.

Q: How can I reduce overlap in my mutual fund portfolio?

Keep only one large-cap fund or a NIFTY 50 index fund. Add a mid-cap fund for stocks ranked 101st-250th. Add a small-cap fund for companies outside the top 250. Consider an international fund for zero overlap with domestic stocks. The ideal portfolio has 3-4 funds across different market caps and geographies, with pairwise overlap below 30%.

Do your mutual funds hold the same stocks? Enter the top holdings of 2-5 funds to check overlap percentage, portfolio concentration score, and get actionable recommendations. Most Indian large-cap funds overlap 70-80% — find out if you are over-diversified or just paying multiple expense ratios for the same portfolio.

Enter the top 10 holdings of two mutual funds to check overlap. Use preset buttons for popular funds or type your own.

Fund A — quick fill:

Fund A name

Fund A — top holdings (comma-separated)

Enter stock names separated by commas. Typically top 10 holdings from the fund factsheet.

Fund B — quick fill:

Fund B name

Fund B — top holdings (comma-separated)

Enter stock names separated by commas. Use exact names for accurate matching.

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Try another scenario

How to Use This Calculator

Two Fund Overlap tab

Enter the top 10 holdings of two mutual funds as comma-separated stock names (e.g., "HDFC Bank, ICICI Bank, Reliance Industries..."). Use the quick-fill buttons to instantly load holdings of popular Indian funds from their latest factsheets. The calculator computes how many stocks are common, the overlap percentage, and gives a clear verdict: well diversified, moderate overlap, or redundant.

Portfolio Overlap Score tab

Add 3 to 5 mutual funds with their top holdings. The calculator computes the pairwise overlap between every pair of funds, the average overlap percentage, the number of unique stocks across your entire portfolio, and a diversification score (0-100). A score above 70 means your portfolio is well-diversified. Below 50 means you have significant redundancy.

Fix My Portfolio tab

Based on the funds you entered in the Portfolio Overlap tab, this tab analyses which funds contribute the most overlap and recommends which to keep and which to replace. It suggests replacement categories (mid-cap, small-cap, international) that would reduce overlap and shows your estimated diversification score before and after the fix.

Share your result

All inputs are encoded in the URL. Click Share to send your overlap analysis to a financial advisor, family member, or bookmark it for later review.

Overlap Formula

Mutual fund overlap measures how many of the same stocks appear in two or more fund portfolios. The calculation is straightforward:

Two-Fund Overlap:
Overlap % = (Common Stocks / Min(Holdings A, Holdings B)) × 100

Where:
Common Stocks = number of stocks that appear in both Fund A and Fund B
Min(Holdings A, Holdings B) = the smaller of the two holding counts

Example: Fund A has 10 top holdings. Fund B has 10 top holdings. 7 stocks are common.
Overlap = (7 / 10) × 100 = 70%

Portfolio Overlap Score (multi-fund):
Average Overlap = Mean of all pairwise overlap percentages
Diversification Score = 100 − Average Overlap

Overlap Benchmarks:
< 30% = Well diversified (good)
30–50% = Moderate overlap (acceptable if fund styles differ)
50–70% = High overlap (consider replacing one fund)
> 70% = Redundant (sell one — you are paying two expense ratios for the same portfolio)

Example

Rahul — software engineer in Bangalore with 4 mutual funds

Rahul (28) invests in 4 mutual funds via SIP, believing he is well-diversified. He enters the top 10 holdings of each fund to check.

Step 1: Enter fund holdings

Fund 1 (SBI Bluechip)HDFC Bank, ICICI Bank, Reliance, Infosys, TCS, Bharti Airtel, L&T, SBI, ITC, Axis Bank

Fund 2 (ICICI Pru Bluechip)HDFC Bank, ICICI Bank, Reliance, Infosys, L&T, Bharti Airtel, TCS, ITC, Axis Bank, SBI

Fund 3 (Axis Bluechip)HDFC Bank, Bajaj Finance, Infosys, TCS, ICICI Bank, Avenue Supermarts, Bharti Airtel, Kotak Bank, Reliance, Titan

Fund 4 (Parag Parikh Flexi Cap)HDFC Bank, Alphabet, Microsoft, Amazon, ITC, Bajaj Holdings, Coal India, ICICI Bank, Power Grid, Bharti Airtel

Step 2: Portfolio overlap result

Total holdings entered40 (10 per fund × 4 funds)

Unique stocks19

Average pairwise overlap~55%

Diversification score45 / 100

Rahul's realisation

Rahul thought he owned 40 different stocks across 4 funds, but actually holds only 19 unique stocks. His 3 large-cap funds (SBI, ICICI, Axis) overlap heavily — all hold HDFC Bank, ICICI Bank, Infosys, TCS, and Reliance. The Parag Parikh fund is the only one adding genuine diversification via international stocks (Alphabet, Microsoft, Amazon). The calculator recommends keeping 2 funds and replacing the other 2 with a mid-cap and a small-cap fund to increase unique stock count to 35+ and push the diversification score above 70.

FAQ

What is mutual fund overlap and why does it matter? ▼

Mutual fund overlap occurs when two or more funds in your portfolio hold the same underlying stocks. It matters because: (1) you are paying multiple expense ratios (1-2% per fund) for what is essentially the same portfolio; (2) you have a false sense of diversification — owning 5 funds does not mean owning 50 different stocks if they all hold the same NIFTY 50 companies; (3) it makes rebalancing harder and can trigger unnecessary capital gains tax. In India, most large-cap funds have 70-80% overlap with each other because SEBI mandates they invest at least 80% in the top 100 companies by market cap.

What is a good overlap percentage between two mutual funds? ▼

An overlap below 30% between any two funds is considered well-diversified — the funds complement each other. Between 30-50% is moderate and acceptable if the funds have different investment styles (e.g., one is value-oriented and the other is growth-oriented). Above 50% indicates high overlap — you should consider whether both funds are necessary. Above 70% means the funds are nearly identical, and keeping both is redundant. You are better off consolidating into one fund and investing the other allocation into a different market cap or asset class.

Why do most Indian large-cap funds hold the same stocks? ▼

This is a structural issue caused by SEBI's mutual fund categorisation rules (October 2017). Large-cap funds must invest at least 80% of their corpus in the top 100 companies by market capitalisation. Since the top 10-15 companies (HDFC Bank, Reliance, ICICI Bank, Infosys, TCS, Bharti Airtel, ITC, L&T, SBI) make up a disproportionate share of market cap, every large-cap fund ends up holding these same stocks. The only differentiation is in the remaining 20% and the exact weightage given to each stock. This is why holding multiple large-cap funds provides minimal additional diversification — a single NIFTY 50 index fund at 0.05-0.10% expense ratio achieves the same result for far less cost.

How can I reduce overlap in my mutual fund portfolio? ▼

To reduce overlap: (1) Keep only one large-cap fund (or a NIFTY 50 index fund) instead of multiple large-cap active funds. (2) Add a mid-cap fund — mid-cap stocks (101st to 250th by market cap) have minimal overlap with large-cap holdings. (3) Add a small-cap fund for exposure to companies that large-cap funds cannot hold. (4) Consider an international fund (e.g., Motilal Oswal S&P 500, Parag Parikh Flexi Cap) for zero overlap with domestic large-cap stocks. (5) If you want sector exposure, use a sectoral or thematic fund focused on IT, pharma, or infrastructure. The ideal portfolio has 3-4 funds across different market caps and geographies, with pairwise overlap below 30%.

Where can I find the top holdings of my mutual fund? ▼

Every mutual fund in India is required by SEBI to disclose its complete portfolio monthly. You can find the top holdings on: (1) Your fund house website — go to the scheme page and download the latest factsheet (PDF). (2) AMFI (amfiindia.com) — the official industry body maintains all fund portfolio disclosures. (3) Value Research (valueresearchonline.com) — search for your fund and check the "Portfolio" tab. (4) Moneycontrol or ET Money — popular platforms that show fund holdings. For this calculator, you only need the top 10 holdings (stock names) — enter them as comma-separated values. The top 10 typically represent 40-60% of the fund's total corpus and are the primary driver of overlap.

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