Portfolio Overlap

Path:
Utilities > Scheme Compare > Portfolio Overlap Tab

Objective:
The Portfolio Overlap tab in Scheme Compare shows how much the selected mutual fund schemes have in common. It builds a matrix where each cell shows the overlap % between the row scheme and the column scheme. Click any cell to see a detailed holdings overlap analysis for that pair of schemes: which scrips both schemes hold, and each scrip’s weight in each scheme.

Distributors use Portfolio Overlap to:

• Check a client’s portfolio: select the client in Scheme Compare to load the client’s schemes, then open the Portfolio Overlap tab. This shows whether the client’s schemes hold mostly the same stocks, which means less real diversification than the number of schemes suggests.
• Check a model portfolio: select the model in Scheme Compare to load its schemes, then open the Portfolio Overlap tab to make sure the model’s schemes are not duplicating each other.
• Evaluate a new scheme: add it alongside existing schemes to see how much it overlaps with them before recommending it.
• Find schemes to consolidate: spot schemes with very similar portfolios.

The Portfolio Overlap matrix can be viewed on screen for up to 20 schemes. For more than 20 schemes, download the matrix as an Excel file.

Selecting Schemes:
Schemes for Portfolio Overlap are selected in Scheme Compare in one of three ways:

• By Client: select a client to load all schemes in that client’s portfolio.
• By Model: select a model portfolio to load all schemes in that model.
• Manually: search for and add schemes one by one.

Reading the Matrix:

• Rows and columns: Each row and column is one selected scheme. On screen, the scheme name for a column appears when you hover over its header. The Excel download shows the names in full.
• Cell value: The overlap % between the row scheme and the column scheme, based on their common holdings.
• Diagonal cells: Where a scheme meets itself, the cell is blank (shown as “–”).
• Cell click: Opens the detailed holdings overlap analysis for that pair of schemes. It lists the common scrips and each scrip’s weight in both schemes.

FAQs:

Q1. What does the Portfolio Overlap tab show?
The Portfolio Overlap tab in Scheme Compare shows the % of common holdings between any two selected mutual fund schemes, laid out as a matrix.

Q2. Where can I find Portfolio Overlap?
Go to Utilities > Scheme Compare, select the schemes, and open the Portfolio Overlap tab.

Q3. How do I check the portfolio overlap of a client’s schemes?
In Utilities > Scheme Compare, select the client to load all schemes in the client’s portfolio. Then open the Portfolio Overlap tab to see the overlap between them.

Q4. How do I check the portfolio overlap of a model portfolio?
In Utilities > Scheme Compare, select the model to load all its schemes. Then open the Portfolio Overlap tab to see the overlap between them.

Q5. How many schemes can I compare in Portfolio Overlap?
Portfolio Overlap shows up to 20 schemes on screen. For more than 20 schemes, download the Portfolio Overlap matrix as an Excel file.

Q6. How do I read a cell in the Portfolio Overlap matrix?
Each cell in the Portfolio Overlap matrix shows the overlap % between the scheme in that row and the scheme in that column. A higher value means the two schemes hold more of the same stocks.

Q7. How do I see which stocks are common between two schemes in Portfolio Overlap?
Click the cell for the two schemes in the Portfolio Overlap matrix. This opens the detailed holdings overlap analysis, which lists the common scrips and each scrip’s weight in both schemes.

Q8. Why is the diagonal blank in the Portfolio Overlap matrix?
The diagonal cells in the Portfolio Overlap matrix compare a scheme with itself, so no overlap value is shown there.

Q10. How do I see scheme names for the columns in Portfolio Overlap?
On screen, hover over a column header in the Portfolio Overlap matrix to see the scheme name. The Excel download shows the names in full.

Q11. Can I download the Portfolio Overlap matrix?
Yes. The Portfolio Overlap matrix can be downloaded as an Excel file. Use this when comparing more than 20 schemes.

Q12. Is the Portfolio Overlap matrix symmetric?
Yes. In Portfolio Overlap, the value for Scheme A vs Scheme B is the same as for Scheme B vs Scheme A.

Q13. How can Portfolio Overlap help with client portfolio reviews?
Select the client in Scheme Compare and open the Portfolio Overlap tab to check whether the client’s schemes are actually diversified. If two schemes have high overlap, the distributor can click the cell to see the common scrips, then consider consolidating the schemes or replacing one.

Q14. Does low overlap in Portfolio Overlap mean the schemes are in different categories?
Not necessarily. Low overlap in Portfolio Overlap only means the schemes hold different stocks. Two schemes in the same category can still have low overlap.