The Player Everyone Wants
The auction was over.
Every team had its squad.
Then the 12th Man started checking the team sheets.
Team A?
There he was.
Team B?
Same player.
Team C?
Same player again.
He looked around.
“Arre... sabne isi ko kyun pick kiya?” 😂
Nobody had copied anyone.
Every captain had made their own decision.
But somehow, the same player had ended up everywhere.
And suddenly, five different teams didn't look quite so different.
🏏 Welcome to THE 12TH MAN — EPISODE 009
In our cricket universe:
One Team = One Mutual Fund
Imagine owning five different teams.
Five captains.
Five Playing XIs.
Sounds diversified, right?
But what if the same players keep appearing in all five?
That's portfolio overlap.
It tells us how much the underlying holdings of two mutual funds have in common.
So instead of asking:
“How many mutual funds do I own?”
ask:
“How different are the players inside them?”
Because different jerseys don't always mean different players.
🏏 The 12th Man Rule
Don't count your teams.
Count the players they share.
That's the kind of thing we want investors to discover at Gajamudra.
Not just what fund you own.
What you actually own underneath it.
Over to the Dressing Room
Pick any two funds you own.
Look at their Playing XIs.
How many players are common?
Bring the funds.
Bring the curiosity.
Let's compare.
Beyond Returns. Understand What You Own.
Next Monday...
We've seen the captain's favourites.
We've seen the same players appearing across different teams.
But what happens when the captain suddenly drops one?
🏏 Episode 010 — The Sudden Drop
Because sometimes, who disappeared from the Playing XI is the real story.
I checked current 2026 coverage before drafting these. The key SEO opportunity is to target “same stocks,” “how to check overlap,” “overlap percentage,” and “diversification” rather than repeating the basic definition already covered in the article. Recent Indian coverage specifically discusses overlapping holdings across AMCs and the misconception that multiple funds automatically create diversification. (Value Research Online)
FAQs
1. How do I check portfolio overlap between two mutual funds?
Portfolio overlap can be checked by comparing the underlying stocks and their portfolio weights in both funds. Looking at common holdings helps reveal how much of the two portfolios is effectively exposed to the same companies.
2. Why do different mutual funds hold the same stocks?
Different fund managers can arrive at similar holdings because they may operate within the same investment universe. This is particularly common in categories where the number of eligible companies is relatively limited. (Value Research Online)
3. Does owning multiple mutual funds guarantee diversification?
No. Owning several funds does not automatically mean you own different stocks. If multiple funds have substantial common holdings, your portfolio may have more duplication than expected. (Value Research Online)
4. What percentage of portfolio overlap is considered high?
There is no universal percentage that makes overlap automatically “good” or “bad.” The appropriate level depends on the investor's objective and the funds being compared. As a practical reference, recent Indian fund analysis has used 50% overlap as a significant threshold when examining fund pairs. (Value Research Online)
5. Can mutual funds from different AMCs have high portfolio overlap?
Yes. Different AMCs can still hold many of the same companies, even when their fund names, managers and brands are different. Recent analysis of Indian equity funds has found substantial overlap between some funds from different fund houses. (Value Research Online)
6. Why is portfolio overlap common in large-cap mutual funds?
Large-cap funds operate within a relatively constrained universe of India's largest companies. When multiple managers select from the same pool, their portfolios can naturally end up sharing many of the same stocks. (Value Research Online)
7. Can two mutual funds have different names but almost the same portfolio?
Yes. Two funds can have different names and investment teams while holding many of the same companies. This is why looking at the underlying holdings can reveal information that fund names alone don't show. (Value Research Online)
8. How does portfolio overlap affect mutual fund diversification?
High overlap can reduce the amount of diversification you actually get from adding another fund because some of your exposure is being repeated across schemes. The important question is therefore not only how many funds you own, but how different their underlying holdings are. (Value Research Online)
9. Can portfolio overlap change over time?
Yes. Mutual fund portfolios change as managers buy, sell or adjust the weights of their holdings. Therefore, an overlap comparison represents the portfolios at a particular point in time and can change with subsequent portfolio disclosures.
10. Is portfolio overlap the same as owning the same stock twice?
Not exactly. Owning the same stock through multiple funds is one component of overlap. Portfolio overlap looks at the common holdings across two portfolios and their weights, giving a broader picture of how similar the two portfolios are.