Many Indian investors diversifying across mutual funds within the same fund house may be undermining their own strategy—due to a hidden threat: portfolio overlap.

A new analysis by wealth advisory startup Fynprint reveals that multiple mutual fund schemes—often within the same asset management company (AMC)—frequently hold the same top stocks, significantly reducing true diversification and exposing investors to unnecessary risk. Advertisement

“High overlap means you’re essentially buying the same stocks across different funds,” Fynprint analysts noted. “That’s not diversification—it’s redundancy.”

Several structural forces drive this issue. AMCs often employ centralized research teams, creating a unified “house view” that guides stock selection across schemes. Fund managers also tend

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