Mutual Fund Overlap Calculator
Find out how much two mutual funds actually have in common. Enter the holdings and portfolio weights of each fund to see the overlap percentage, the stocks you are doubling up on, and whether the second fund really adds diversification.
Fund holdings
Fund A
Fund B
Overlap result
Portfolio overlap
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Common holdings
Stocks held by both funds, ranked by how much they contribute to the overlap.
| Stock | Fund A | Fund B | Overlap |
|---|
No stocks appear in both funds, so the overlap is 0%.
How overlap is calculated
- Overlap is the sum, across every stock held by both funds, of the smaller of the two portfolio weights.
- An overlap of 40% means roughly 40% of each fund's portfolio is invested in the exact same stocks.
- Below 20–30% is generally considered comfortable diversification; above 60% the two funds are effectively the same portfolio.
- Duplicate stock names inside a fund are merged and their weights added together.
- Names are matched case-insensitively after trimming extra spaces, so "HDFC Bank" and "hdfc bank" count as the same stock.
- With scaling enabled, each fund's entered weights are rescaled to total 100% — useful when you only paste the top 10 holdings instead of the full portfolio.
- Enter holdings from each fund's latest portfolio disclosure. Fund portfolios change monthly, so refresh the data before making decisions.
This calculator provides an indicative overlap estimate based on the holdings you enter. It is not investment advice and does not account for cash positions, derivatives, foreign holdings or scheme-specific nuances. Please verify with the official portfolio disclosures before acting on the result.
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Understand Mutual Fund Overlap Before Adding Another Fund
Owning several mutual funds does not automatically mean your investments are well diversified. Different schemes can hold many of the same companies, creating repeated exposure inside your portfolio. A Mutual Fund Overlap Calculator helps you compare the underlying holdings of two funds and understand how much of their portfolios may be invested in common securities.
Look beneath the fund name
Two schemes with different names or investment styles may still own the same stocks, bonds, or other securities.
Check the size of exposure
Sharing a small position is different from both funds having a large allocation to the same company.
Holdings can change
Portfolio overlap is a snapshot based on the holdings and reporting date used for the comparison.
What Is Mutual Fund Overlap?
Mutual fund overlap occurs when two or more funds own the same underlying investments. For example, a large-cap fund and a flexi-cap fund may both hold shares of the same leading companies. Holding both funds gives you two fund units, but it may not give you as much additional stock-level diversification as you expected.
Overlap is commonly measured between two funds, then reviewed alongside the rest of an investor's portfolio. It can be assessed by counting shared holdings or by comparing the percentage of each fund invested in those holdings. A weighted overlap calculation is particularly useful because it considers the size of each shared position instead of treating every holding equally.
Important: Overlap is a measure of shared exposure, not a complete risk score. A percentage on its own does not tell you whether a fund is suitable, whether it will perform well, or whether you should sell it.
Why Does Mutual Fund Portfolio Overlap Matter?
Overlap can help you see whether a new fund adds a genuinely different role to your investments or mainly increases exposure you already have. The effect depends on the securities involved, their weights, your goals, and your overall asset allocation.
Potential concerns with high overlap
- Your portfolio may be more concentrated in a small group of companies than the number of funds suggests.
- Funds with similar holdings may respond similarly to company-specific or sector-wide developments.
- A new scheme might add less diversification than you intended, even if its name or category looks different.
Why some overlap can be reasonable
- Different funds may share established companies while following different mandates or portfolio strategies.
- A fund may still serve a useful purpose through its asset class, market segment, investment process, or portfolio role.
- Overlap should be considered with costs, risk, diversification, performance, and your investment plan—not in isolation.
How Is Mutual Fund Overlap Calculated?
One common approach is to compare the portfolio weight of each security in Fund A with its weight in Fund B. For every security held by both funds, take the smaller of the two weights. Add those minimum weights across all shared securities. A security held in only one fund contributes zero to the overlap.
In this expression, weights are written as decimal fractions of each scheme's portfolio. If the weights are already entered as percentages, add the minimum percentage for each common security directly.
Example: Calculating the Overlap Step by Step
The following is an illustrative example, not the current holdings of real mutual funds. Suppose two portfolios contain these securities and weights:
| Security | Fund A Weight | Fund B Weight | Shared Weight Counted |
|---|---|---|---|
| Security P | 10% | 25% | 10% |
| Security Q | 15% | 30% | 15% |
| Security R | 20% | 10% | 10% |
| Security S | 10% | 0% | 0% |
| Security X | 0% | 25% | 0% |
| Security Y | 25% | 10% | 10% |
| Security Z | 20% | 0% | 0% |
| Total Weighted Overlap | 45% | ||
Example arithmetic: 10% + 15% + 10% + 10% = 45%. The minimum of the two fund weights is counted only for securities held by both funds.
Under this method, the overlap in the example is 45%. Other tools may report a different number if they use a holdings-count method, include only selected holdings, normalise weights differently, or use a different reporting date. Check the method and the data date before comparing results from separate calculators.
How to Use a Mutual Fund Overlap Calculator
Use the calculator on this page to compare the funds you are considering. The exact fields depend on how the tool is designed; when entering holdings manually, use portfolio weights from comparable and clearly dated fund disclosures.
Select the Two Funds
Choose the schemes you want to compare. Check the correct plan or scheme where relevant, rather than relying on a similar-sounding fund name.
Use Comparable Holdings Data
Use holdings from the same or closely aligned reporting date. Confirm whether the figures refer to total portfolio weights or only a subset such as top holdings.
Calculate and Inspect Shared Positions
Review the overlap percentage and, where available, the list of common securities and their individual weights.
Consider the Result in Context
Decide what role each fund plays in your plan and review overall concentration, asset allocation, expenses, risk, and investment objectives.
How to Interpret the Overlap Percentage
A higher weighted overlap generally means a larger share of the two funds' portfolios is invested in the same securities under the selected method. A lower result suggests less shared weight in the holdings being compared. Neither result is automatically better: the right mix depends on the purpose of each fund and the rest of your portfolio.
- Review the largest shared positions. A handful of heavily weighted common stocks may matter more than many tiny shared holdings.
- Look beyond stock overlap. Sector mix, market capitalisation, debt exposure, cash, overseas investments, and other asset classes can affect overall diversification.
- Check the full portfolio. A pairwise comparison does not automatically calculate your total exposure across every fund you own.
- Avoid universal thresholds. There is no single overlap percentage that determines whether a fund is right or wrong for every investor.
Limitations to Keep in Mind
Overlap analysis is most useful when the underlying data are complete, comparable, and recent. It is a snapshot, not a prediction of future performance or a replacement for understanding a fund's investment mandate.
- Portfolio changes: Fund managers can buy, sell, or change the weights of holdings, so overlap may rise or fall over time.
- Data coverage: A result based only on top holdings can miss overlap among securities further down each portfolio.
- Different asset types: Stock-only comparisons may not capture shared bonds, cash, derivatives, fund units, or other exposures.
- Different methods: Weighted overlap and shared-holding counts answer different questions; results are not directly interchangeable.
- Not a forecast: A high overlap does not guarantee identical returns, and a low overlap does not guarantee that two funds will behave differently in every market.
Frequently Asked Questions
What does a Mutual Fund Overlap Calculator show?
It compares the underlying holdings of selected mutual funds and estimates how much their portfolios have in common. Depending on the tool, it may show a weighted overlap percentage, the number of shared securities, or a list of common holdings.
Is high mutual fund overlap bad?
Not always. High overlap can indicate repeated exposure to the same companies or sectors, but it does not by itself mean you should avoid or sell a fund. Consider each fund's purpose, the full portfolio, your risk tolerance, and your investment horizon.
Can funds from different categories have the same stocks?
Yes. Funds with different categories or strategies can still invest in the same companies. Fund labels describe a mandate or approach; they do not guarantee completely different holdings.
Does a 50% overlap mean half of my money is invested in the same stocks?
Not necessarily. The meaning depends on the tool's methodology and what funds or holdings were entered. With the weighted minimum-weight method, 50% means the sum of the lower weights for common securities is 50 percentage points of the compared scheme portfolios. It is not automatically a calculation of the exact duplicated amount across your personal investments.
How often should I check mutual fund overlap?
Review it when considering a new fund and periodically as part of your portfolio review. Use the latest available holdings disclosures and note the reporting date, because the composition of a mutual fund can change.
Where can I find mutual fund holdings data?
Start with the asset management company's scheme portfolio disclosure and factsheet. For Indian mutual funds, AMFI also provides investor information and links to industry-level disclosures. Ensure the data date and the basis of the weights are clear before comparing funds.
Should I choose a fund only because it has low overlap?
No. Low overlap can be useful when you specifically want a different source of exposure, but it is not a standalone selection rule. Also consider the fund's objective, risks, investment strategy, costs, consistency, and how it fits your broader financial plan.
Further Reading and Methodology
These resources provide additional information about portfolio overlap, diversification, and the weight-based calculation approach.
Disclaimer: This content is for educational and informational purposes only. Portfolio overlap is dependent on the holdings data, reporting date, and calculation method used. It is not a recommendation to buy, hold, or sell any mutual fund and should not be treated as personalised financial advice. Consider consulting a qualified financial professional before making investment decisions.
