Sheetal Goel · DistrictNews · 2026-09-06
Investors often add another mutual fund believing they are increasing
Investors often add another mutual fund believing they are increasing diversification. But if the new fund holds many of the same stocks as an existing flexi-cap fund, the portfolio may become bigger without becoming meaningfully different. Balanced Advantage Funds (BAFs) show the highest overlap. 75.3% with BAFs, 71.5% with large & mid-cap, and 63.8% withlarge-cap.
Why it matters. Why it matters: Investors often add another mutual fund believing they are increasing diversification.
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