What does holding overlap mean?
Holding overlap arises when an investor possesses the same shares across multiple holdings.
For example, consider Mr. Mani, a Fyers client. He has invested ₹1,00,000 in the Franklin India Technology Mutual Fund and simultaneously holds TCS stocks worth ₹1,00,000. Notably, the Franklin India Technology Mutual Fund carries a notable 14% weightage of TCS shares. Thus, Mr. Mani's investment scenario presents a holding overlap, with TCS shares amounting to ₹1,14,000.
Whilst minor overlaps can be anticipated, excessive holding overlaps might expose the investor to augmented risk levels. This can adversely affect portfolio returns when set against a benchmark.
For retail investors, comprehending individual fund holdings can be intricate. This is where the Portfolio Analyzer's 'Holding Overlap' section becomes pivotal. It grants insights into risk concentration within your holdings, assisting in making informed decisions on portfolio diversification.
In the demonstrated image, the 'Holding Overlap' feature showcases the combined weightage of the top 10 scrips in the portfolio. Evidently, Bharti Airtel Ltd. has the most substantial concentration. Leveraging this data, investors can deliberate on enhancing their portfolio diversity.
Related Articles
What does 'Beta Analysis' mean in FYERS 2.0 App?
The Beta is the measure of a stock’s volatility against the index. Beta Analysis provides the how volatile is the stock compared to the index. Let's say, the Beta of the Nifty50 Index is 1.00. If the beta of ‘X Ltd.’ is 0.50 then the price of X Ltd. ...What does QVT mean in the FYERS 2.0 app?
Quality Valuation and Technicals are the different parameters set using the fundamentals, technicals and historical performance of each individual stocks. Generally, the scores are assigned between 0-100 where a score of over 50 is considered good ...What does extinguishment date mean in share Buybacks?
The extinguishment date refers to the timeline when a company, after buying back its own shares or other securities, must destroy them. This process is typically completed within a week post the buyback's conclusion. The aim is to reduce the ...What does Fundamentals & Research mean in the FYERS 2.0 App?
The ‘Fundamental and Research’ option in the 2.0 app provides the data based on the fundamentals analysis of a listed company. For instance, the fundamental analysis of Indian Oil Corporation Limited is displayed in the image below: The Fundamentals ...What is Portfolio Analyzer Report?
The purpose of the Portfolio Analyzer report is to analyze an investor’s portfolio and give insights based on different financial measures. For instance, you can determine the proportion of assets invested in different sectors, equity styles, or ...