Is Your Mutual Fund Portfolio Overlapping?  Oct 04, 2023


The Indian equity markets have scaled to a lifetime high, as you know, and the euphoria is pretty much evident.

Giving in to the FOMO (fear of missing out), those who stayed out of equities, too, are now coming forward and participating.

The CDSL and NSDL (the two depositories in the country) data reveals that 31 lakh new demat accounts (noticeably higher than the last couple of months) were added in August 2023, taking the total demat tally to 12.66 crore, 25.83% more than year ago.

Similarly, mutual folios touched an all-time high of 15.42 crore versus 13.64 crore, an increase of 13.05%.

Certain sub-categories of equity mutual funds particularly have witnessed remarkable inflows in the lump sum as well as the SIP mode.

But when you are investing in equities to build wealth and accomplish the envisioned financial goals, care should be taken to avoid a portfolio overlap.

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