How to Reduce Mutual Fund Overlap
Start by mapping your current funds, compare overlap scores fund by fund, remove or replace the most duplicated schemes, and diversify across categories, AMCs, and market caps.
Key Takeaways
- •Audit your full portfolio, not just new purchases.
- •Replace high-overlap pairs with complementary categories.
- •Use stock-level overlap to spot hidden concentration.
FAQ
Should I replace or just stop SIPs in overlapping funds?
That depends on tax, exit load, and goal timeline. Often reducing new contributions first is easier.