Mutual Fund Overlap Calculator

Sample Portfolio Health Check · an actual portfolio, personal details removed

What the Health Check found

Elevated risk of overdiversification, with signs of fragmentation

₹40.78 L across 14 equity and hybrid funds, from a ₹68.90 L statement. ₹28.11 L in gold, arbitrage and other non-equity funds was set aside.

1. 1.Elevated risk of overdiversification

   14 distinct equity and hybrid schemes for ₹40.8 lakh of current value. Most of the money sits in a few of them — the largest 5 hold 85.6% — while several others are too small to make much difference.

   For ₹40.8 lakh, 14 schemes is clearly more than a focused design needs. Each fund already holds many companies, so additional schemes add repetition more than protection and blur the role of each holding. Companies held by more than one fund are a holdings fact, not money wasted.

   Worth deciding next

   Review which funds carry a distinct, lasting role and which duplicate one another. A FinEdge Investment Manager can take you through this against your goals.

2. 2.Several funds too small to shape results

   Your 8 smallest funds hold 7.5% of the value checked between them, from 0.2% to 2.4% each.

   Fragmentation is different from overdiversification: it is about holdings too small to make a difference to the outcome, so they add tracking and decisions without adding much. Only you can say whether each allocation was made for a purpose.

   Worth deciding next

   For each small holding, decide whether it deserves a meaningful allocation or no place at all.

A reading of structure only: the Health Check does not see goals or risk appetite, and overlap between funds is a holdings fact, not a fault in itself.