FinanceMoneycontrol
More mutual funds don't always mean better diversification. Here's how to spot portfolio overlap
in5points
Owning more mutual funds does not guarantee better diversification.
Portfolio overlap occurs when multiple funds hold the same underlying stocks or assets.
Investors can use fund holdings overlap tools to check redundancy across schemes.
Excessive overlap defeats the purpose of diversification and can amplify risk.
Reviewing fund portfolios helps ensure each fund adds a distinct exposure.
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