Negative impactSector
Different fund categories, same stocks? These equity mutual funds have up to 79.4% portfolio overlap
Mint 1d ago·27 Jul 2026, 11:56 am
A recent study has revealed a surprising level of similarity in the stock holdings of two different equity mutual funds managed by the same Asset Management Company. The BOI Large & Mid Cap Fund and the BOI Multi Cap Fund were found to have a portfolio overlap of nearly 80%, despite being classified in different fund categories. This significant overlap suggests that investors holding both funds may not be achieving the diversification they expect.
For investors, this finding is important because it challenges the common strategy of buying funds across various categories to spread risk. When funds hold the same stocks, the benefit of diversification is reduced. Instead of spreading money across different companies, the investor's capital is concentrated in a similar set of underlying assets.
Moving forward, investors should review their portfolio holdings to understand the actual level of overlap. It is advisable to look at the specific stocks held by each fund and consider consolidating holdings if the overlap is high. This ensures that the portfolio is truly diversified and not merely a collection of funds with similar strategies.
Key takeaways
- Category: Sector.
- AI reads the tone as negative (potentially bearish) for the stock.
Why it matters
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