Kotak Midcap Fund vs Nippon India Retirement Fund - Income Generation Scheme

A weighted portfolio overlap of 2.33% indicates a low overlap (mostly different holdings). This means that out of every ₹100 you invest across these two schemes, approximately ₹2.33 is allocated to the exact same companies at the same relative proportions. The schemes share 4 common holdings.

The largest overlapping asset in their portfolios is ICICI Lombard General Insurance Company, which commands a weight of 1.18% in Kotak Midcap Fund and 0.73% in Nippon India Retirement Fund - Income Generation Scheme. Holding both schemes increases your concentration in ICICI Lombard General Insurance Company rather than expanding your diversification.

If the overlap is above 30%, it is typically because both schemes benchmark to the same index (e.g. Nifty 50 or Nifty LargeMidcap 250) or overlap in their top large-cap picks. To improve your portfolio's diversification, consider allocating one of these tranches to a category with lower structural correlation (such as a mid-cap, small-cap, or international equity fund).