Last updated: January 21, 2021 | by Sreekanth Reddy
My article on Best Equity Funds is one of the most popular articles on Relakhs.com. I have been receiving lot of queries on how to compare and select the best Equity oriented mutual funds. I have noticed that many investors prefer to invest in lot of funds to achieve diversification. Too many funds, especially from the same Fund category may lead to unnecessary ‘Portfolio Overlap’.
Two seemingly different mutual fund schemes can own the same set of stocks. In such a scenario there is no real purpose of holding two funds. Portfolio overlap leads to redundancy.
In this post let us understand – What is mutual fund portfolio? How to check the portfolio of stocks owned by your mutual fund? What is Mutual Fund Portfolio Overlap? How to compare and check mutual funds portfolio overlap? How to know common stocks owned by two or more funds? Which are the best and free online mutual fund portfolio overlap comparison tools?
What is Mutual Fund Portfolio?
Amutual fundis an entity that pools the money of many investors (unit-holders) to invest in different Financial Securities. These investments may be in shares, debt securities, money market securities or a combination of these, as per the fund’s investment objective.
Equity or Balanced (Hybrid) funds primarily invest in shares of companies. Whereas, Debt mutual funds invest in Fixed income securities.
How to check the Portfolio of Stocks owned by a Mutual Fund Scheme?
You can find the portfolio details of a mutual fund scheme on respective Fund House website (or) on online portals like moneycontrol.com or valueresearchonline.com.
For example – If you want to find out the portfolio of stocks owned by HDFC Top 200, follow the below steps;
- Visit moneycontrol.com website.
- Key in ‘HDFC Top 200’ (or your fund scheme name) in the SEARCH bar which is available at the top of the page.
- Click on ‘Holdings’ under ‘Portfolio’ option (available at the left side of the page) to know about the list of stocks owned by this fund.
What is Mutual Fund Portfolio Overlap?
Mutual Fund Overlap occurs when you own two or more mutual funds that may have similar investment objectives and therefore hold many of the same securities.
Let’s say you would like to invest in Fund ABC and also in Fund XYZ. After checking their portfolio holdings, you find that Fund ABC owns three companies’ stocks i.e., Infosys, TCS & SBI and Fund XYZ has invested in Infosys, TCS & Reliance.
Here, you could clearly see that there is too much of a portfolio overlap. Both the funds have invested in Infosys and TCS shares. These are the common stocks owned by both the funds.
As an investor, you don’t want too much of an intersection between the circles- you want the least amount of overlap possible.
Free Mutual Fund Portfolio Overlap Comparison Tools
You may use the below Mutual Fund Portfolio comparison tools to analyze the extent of portfolio overlap among the holdings of your mutual funds.
- Equity Mutual Fund Portfolio – Overlap Checker – This tool (MS Excel based) has been developed by Prof. Pattabiraman of freefincal.com. As of now, the Beta version of this tool is available. This Equity MF Portfolio comparison tool fetches the data from moneycontrol.com. At a time, you can compare the portfolios of three mutual fund schemes. Click here to download the Overlap Checker tool.
- Online Portfolio Overlap Tool – This online tool is available on thefundoo.com website. You can compare the portfolio holdings of two mutual fund schemes online. Click here to use this online tool.
Why & How to avoid Mutual Fund Overlap?
You may not achieve true ‘Diversification’ just by investing in too many mutual fund plans. You may be surprised to learn that many of your mutual funds overlap. There can be a real danger in mutual fund overlap, and you may not be as diversified as you think.
Having your mutual funds overlap with one another is not the end of the world. When you are comparing the portfolios of two mutual fund schemes, there will definitely be some overlap.. The real issue is the extreme case where you own several mutual funds in the same fund category, investing in the exact same stocks. You run the risk of not being properly diversified in your investing portfolio.
Better diversification can lead to ‘downside protection’ and ‘controlled volatility’. Diversification ensures that if one sector had poor performance, or one stock within a sector struggled, your entire investment kitty doesn’t godown the drain.
It is advisable to understand the type of investing objective of each mutual fund that you own (or planning to invest) and consider spreading out amongst large cap, mid cap, and small cap mutual funds. Also, it is better to avoid the owning too many funds managed by the same fund manager.
You may use the above tools when choosing a mutual fund to avoid portfolio overlap.
Continue reading :
- My Mutual Fund Portfolio
- Why your Best Mutual Fund Schemes may not remain as ‘the best’? | New Classification of MFs
- What is Portfolio Tracking and Why Should I do it?
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Visit freefincal.com for more excel-based free Personal Finance Calculators)
FAQs
The overlap between them is given as the number of elements (holdings or monetary units when using market capitalisation) in common counting both portfolio A and B (i.e. double counting the common elements) divided by the total number of elements in portfolio A and portfolio B.
How do I track a mutual fund portfolio all in one place? ›
Best apps for tracking your investments in India
- myCams Mutual Fund App. myCAMS gives you a 360 view of your portfolio that is connected to your PAN. ...
- KfinKart. This multi-feature app allows a one-touch login. ...
- Money Control. ...
- Zerodha's Coin. ...
- ET Money. ...
- Groww.
A can invest in about 15% of mid caps and B can inevst in about 30% of large cap stocks. So the overlap could be about 40%. This however will not be permanent. There is nothing wrong if this happens as it is beyond the control of the investor.
How do I create a portfolio tracker in Excel? ›
You can use basic Excel knowledge to create rules, spot trends, and compare stocks with the stock data pulled into Excel.
- Step 1: New Workbook & Tickers. ...
- Step 2: Stock Data Types. ...
- Step 3: Stock Widget. ...
- Step 4: More Stock Info. ...
- Step 5: Personal Investment Info. ...
- Step 6: Rules for Sell/Hold. ...
- Step 7: Aggregating Returns & Equity.
Track Your Stock Portfolio with Automatic Price Updates in ...
How can I check my mutual fund portfolio online? ›
Log onto the CAMSonline portal and click on 'Investor Services' on the top menu. Then, click on the 'Mailback Services' tab on the left side of the menu. Next, select 'Consolidated Account Statement – CAMS+Karvy+FTAMIL+SBFS'. Once this is done, you need to provide a valid email address and choose a password.
What is portfolio overlap in mutual fund? ›
Mutual fund portfolio overlap occurs when you invest in two or more different funds investing in the same asset such as shares of a company. You invest in various funds to diversify your investment portfolio.
What is fund overlap? ›
Fund overlap occurs when an investor holds multiple mutual funds or ETFs that each invests in the same or similar securities. Fund overlap can reduce portfolio diversification and create concentrated positions, often with the investor largely unaware.
Which app is best for mutual fund tracking? ›
Groww is one of the best mutual fund mobile apps. You can invest in direct mutual funds with zero commission using Groww. Key features of Groww are given below. Dashboard for tracking all your investments.
What is the best free portfolio tracker India? ›
12 Best Investment Tracking Apps for Managing Your Portfolio
- 1) Delta Investment Tracker.
- 2) Sharesight.
- 3) Personal Capital.
- 4) Kubera.
- 5) Stock Rover.
- 6) Webull.
- 7) SigFig.
- 8) M1 Finance.
Best Apps To Invest In Mutual Funds
- Coin by Zerodha. Zerodha is a well-known investment platform and probably the simplest app that can easily let you invest in mutual funds. ...
- Groww. Groww is another app that you can use for investment purposes. ...
- Paytm Money Mutual Funds App. ...
- Kuvera. ...
- ETMoney.
So, here are a few things you should keep in mind to avoid any overlaps.
- Do not buy too many funds run by the same fund manager.
- Do not keep buying funds from the same fund house.
- Watch the sector weightings.
- Check whether there are too many large-cap funds in your portfolio.
Maximum 35% of overlap between schemes are acceptable. More than that is risky in nature. More than 5 schemes in a portfolio, indicates over diversification.
How do you do a portfolio analysis mutual fund? ›
- Analyze funds, pick the right ones and avoid investing in the bad ones.
- Figure the portfolio composition – just equity, just debt, a mix of equity and debt etc.
- Once the portfolio is identified, figure how much to invest across each of these funds.
This will take only a few minutes to download and import your stock data.
- Log in to Google Finance at google.com/finance.
- Click on "Portfolios." If you have multiple portfolios, select the portfolio you want to export.
- Click on "Download to spreadsheet."
- Open Excel.
- Click on "File" and then click on "Open."
How to Monitor Your Investments
- Create a financial plan. ...
- Look at the whole picture. ...
- Establish benchmarks. ...
- Evaluate your individual holdings.
Search for data using a keyword or two, choose the data you want, and then click Select. Whenever you want to get current data for your data types, right-click a cell with the linked data type and select Data Type > Refresh. That will refresh the cell you selected, plus any other cells that have that same data type.
Does Excel have a stock tracker? ›
Use Excel to track your investments. It's as easy as typing text into a cell and converting it to the Stocks data type. Stocks is a new Excel feature for Microsoft 365 subscribers and is considered linked data because it connects to an online data source.
How do I make a portfolio spreadsheet? ›
How to Create an Investment Portfolio Spreadsheet - YouTube
How do you rebalance a portfolio in Excel? ›
How to Make a Portfolio Rebalancing Spreadsheet - YouTube
How to Monitor Your Stock Portfolio?
- Analyze the Quarterly Results of the Company. ...
- Keep Tabs on Any Corporate Announcements. ...
- Be Aware of Any Changes in the Shareholding Pattern. ...
- Check the Credit Rating of The Company. ...
- Track the Stock Price. ...
- Assess the Promoter's Pledge of Shares.
How can I track my mutual fund with Karvy?
- Visit Karvyonline.com.
- Click on Manage Your Portfolio tab.
- Click on Track Now button available at the bottom of the page.
- Enter the client code, PAN, and Mail id to track your mutual fund investments.
You can get the folio in the top corner of the Consolidated Account Statement (CAS) sent to you by the AMC on a periodic basis. When you transact through SIPs or through lump-sum investments or redemptions, a Mutual Fund Statement is sent to you. This statement also contains folio number.
What is best portfolio in mutual fund? ›
Here's the list of the five best mutual funds for SIP:
| Fund Name | 3-year Return (%)* | |
|---|
| Parag Parikh Flexi Cap Fund Direct-Growth | 24.38% | Invest |
| PGIM India Flexi Cap Fund Direct-Growth | 21.68% | Invest |
| Mirae Asset Emerging Bluechip Fund Direct-Growth | 19.08% | Invest |
| SBI Focused Equity Fund Direct Plan-Growth | 14.65% | Invest |
3 more rowsSo every month, your investment in the fund will reduce by ₹10000. The amount left every month after withdrawal will continue to remain invested. Use the above SWP calculator to know how much you can withdraw from your lumpsum investments.
...
SWP (Systematic Withdrawal Plan) Calculator.
| Total investment | ₹5,00,000 |
|---|
| Final value | ₹5,218 |
1 more rowA flexi-cap fund is a type of mutual fund that is not restricted to investing in companies with a predetermined market capitalization. This type of fund structure will be indicated in the fund's prospectus. A flexi-cap fund can provide the fund manager with greater investment choices and diversification possibilities.
What is difference between QQQ and QQQM? ›
QQQM tracks the same index – the NASDAQ 100. The important differentiator for investors looking to buy and hold this index for the long term is the fee. QQQ has a fee of 0.20%, while QQQM is cheaper at 0.15%. If you're using a tax-advantaged account and you currently own QQQ, switch to QQQM.
Which is better QQQ or VGT? ›
Dividends. If you want an ETF with higher dividend yields, then you should choose VGT, which has a 1.22% dividend yield. QQQ is nearly half of that with a 0.74% dividend yield. The higher dividend yield from VGT means that you will likely get paid more income at the end of the year.
How do you get rolling returns from mutual funds? ›
How To Use MFOnline Rolling Returns Calculator?
- Enter the MFOnline mutual fund scheme name in the rolling return calculator you want to calculate returns. ...
- Enter the start date from which you want to calculate the rolling returns of the scheme.
- Select rolling return period, i.e., 1 year, 3 years, 5 years.
Best Mutual Fund App in India – List of Top 10 Mutual Funds App for Direct SIP
| Rank | Mutual Fund Apps |
|---|
| 1 | Zerodha Coin App |
| 2 | Groww App |
| 3 | ET Money App |
| 4 | CAMS App |
7 more rows11 May 2022
Groww is a safe and secured app with SSL certification and 128-bit encryption keeping the information secured. Moreover, the Groww mutual fund transactions are done via BSE and thus are completely safe.
Is Groww registered with SEBI? ›
Yes, Groww is a SEBI registered Stockbroker in the name of NextBillion Technology Private Limited. Groww SEBI Registration no.: INZ000208032.
Which app is best for portfolio? ›
9 Best Investment Tracking Apps in 2022
- Personal Capital.
- Stock Rover.
- Google Sheets.
- Tiller.
- Morningstar.
- Quicken Premier.
- Mint.com.
- Fidelity Full View.
Best Free Portfolio Management Software to Track Your Investments:
- Personal Capital: Best Overall.
- Mint: For Basic Budgeting.
- Stock Rover Portfolio Management: For Research Tools.
- Morningstar Portfolio Manager: For Hardcore Experts.
- SigFig Portfolio Tracker: For Casual Investors.
- Honorable Mentions.
Best stock tracking app for Android: M1 Finance.
...
While one of the stock tracking apps above likely suits your needs, there are more apps worth looking into, such as:
- Yahoo! Finance.
- StockTwits.
- E-Trade.
- TDAmeritrade.
- Robinhood.
myCAMS is reliable, and it does not hold your account or personal details.
Is Groww app free? ›
There is no charge on opening a trading and demat account on Groww.
How do you track mutual funds? ›
Tracking fund performance
Mutual fund websites list their Net Asset Value (NAV). You can compare the mutual fund's benchmark index, the index chosen by the mutual fund company to serve as a standard for its returns. To know how your fund is performing, you should also compare it with other funds in the same category.
How is quant active fund? ›
This fund has continuously performed better than similar funds. You can consider investing in this fund. Multi Cap Fund : Fund has 99.37% investment in indian stocks of which 44.7% is in large cap stocks, 13.86% is in mid cap stocks, 24.34% in small cap stocks.
Which is the best small cap mutual fund in India? ›
List of Small Cap Mutual Funds in India
| Fund Name | Category | 1Y Returns |
|---|
| Edelweiss Small Cap Fund | Equity | 15.3% |
| Nippon India Small Cap Fund | Equity | 19.7% |
| SBI Small Cap Fund | Equity | 13.8% |
| IDFC Emerging Businesses Fund | Equity | 7.2% |
12 more rowsFund Details(quant Tax Plan)
An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. 3 Years from the date of allotment of the respective Units. For Systematic Investment Plan (SIP), the minimum amount is INR 500/- and in multiples of INR 1/- thereafter.
How do you track mutual funds in Excel? ›
How to use this mutual fund tracker Excel workbook?
- Download and save the file to a folder on your computer (do not leave it in the downloads folder)
- Open the file in Excel (you need Excel 2016 / Office 365 to use this file. ...
- If prompted, enable “External connections”
- Go to Data and click on Refresh all.
How to Manage Your Mutual Funds Smartly/Wisely
- Start out right with portfolio diversification. ...
- If on the SIP route, top it up during market corrections. ...
- Avoid stagnancy by rebalancing your portfolio periodically. ...
- Adopt a passive investment strategy with index funds.
INVEST IN CURATED STOCK & ETF PORTFOLIOS
- Invest in smallcases. Learn, discover & invest in smallcases across different types to build your long term portfolio. ...
- Top and trending managers. ...
- Invest in U.S. Stocks From India.
- Invest in Stacks (Expert curated portfolio using.
