SBI BSE Sensex ETF vs Tata Nifty500 Multicap India Manufacturing 50-30-20 Index Fund

A weighted portfolio overlap of 19.27% indicates a low overlap (mostly different holdings). This means that out of every ₹100 you invest across these two schemes, approximately ₹19.27 is allocated to the exact same companies at the same relative proportions. The schemes share 6 common holdings.

The largest overlapping asset in their portfolios is Reliance Industries, which commands a weight of 10.08% in SBI BSE Sensex ETF and 8.46% in Tata Nifty500 Multicap India Manufacturing 50-30-20 Index Fund. Holding both schemes increases your concentration in Reliance Industries 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).