Glossary › Pair Overlap
Pair Overlap
How much of the same stocks two of your funds hold by weight — a measure of redundancy.
Formula
Overlap(A, B) = sum over stocks s of min(weight_A(s), weight_B(s))
Intuition
If Fund A holds 8% of HDFC Bank and Fund B holds 5%, that overlaps for 5%. Sum over every stock both funds hold. 100% means identical portfolios; 0% means no shared stocks.
What to look for
Two funds in the same category typically overlap 30–60% — that's normal. Above 70% means you're paying two expense ratios for nearly the same exposure. Below 20% across the same category is unusual and worth understanding.
Caveats
Computed off the most recent disclosed holdings (AMFI's Monthly Portfolio Disclosure). Holdings rotate between disclosures, so the overlap is a snapshot, not a steady state.