Are Your SIPs Buying the Same Stocks? A Guide to SIP Portfolio Overlap
Most investors build their SIPs one at a time, over several years — a large-cap fund here, a "diversifying" flexi-cap there, an ELSS at tax season. The quiet problem: many of those SIPs are pouring money into the exact same stocks.
Quick answer
Yes — if you run more than one SIP in the same category, they are very likely buying the same stocks. Two large-cap or two flexi-cap funds typically share 50-70% of their holdings, even across different AMCs. That means a large slice of your monthly SIP is being invested twice into the same companies, with two expense ratios attached.
In this guide:
Why SIPs Quietly Create Overlap
SIP overlap happens because SIPs are added gradually and rarely reviewed together. Each fund looked like a good idea on its own, but no one checked whether the new fund was buying what the existing ones already owned. Three habits drive almost all of it:
1. "Different fund house = different portfolio." This is the most common myth. A large-cap fund — whichever AMC runs it — is mandated to invest at least 80% in the top 100 companies by market cap. There are only 100 such companies, so every large-cap fund is fishing from the same small pond. Different brand, same fish.
2. Adding funds to feel "more diversified." Investors often add a fifth or sixth SIP for safety. But once you hold a few equity funds in the same category, each new one mostly duplicates what you already have rather than adding genuinely new exposure.
3. Category labels that hide the truth. A flexi-cap fund can invest across market caps, but in practice most flexi-cap managers park 60-70% in large caps for stability. So your "flexi-cap for diversification" often looks a lot like your large-cap fund underneath.
A Real Example: Three Common SIPs
Imagine a fairly typical Indian SIP portfolio: a large-cap fund, a flexi-cap fund, and an ELSS tax-saver. On the surface, three different categories across (say) three different AMCs. Underneath, here's the kind of shared core you'll usually find:
| Stock | Large Cap | Flexi Cap | ELSS |
|---|---|---|---|
| HDFC Bank | ✔ | ✔ | ✔ |
| ICICI Bank | ✔ | ✔ | ✔ |
| Reliance Industries | ✔ | ✔ | ✔ |
| Infosys | ✔ | ✔ | ✔ |
| Larsen & Toubro | ✔ | ✔ | — |
| Axis Bank | ✔ | — | ✔ |
Illustrative example. Exact holdings and weights vary by fund and change every month — but the shared large-cap core is remarkably consistent across categories.
The result: even though you picked three "different" funds, the top 5-6 names — and often 50-65% of total weight — are the same companies. Your monthly SIP is buying HDFC Bank and Reliance three times over.
Signs Your SIPs Overlap
You probably have meaningful SIP overlap if any of these is true:
• Two or more of your SIPs are in the same category (e.g. two large-cap, two flexi-cap, or large-cap + ELSS).
• You chose funds mainly by past returns or AMC brand, not by category or holdings.
• You added funds over time to "diversify" without ever comparing them side by side.
• Most of your funds are large-cap-heavy (large-cap, flexi-cap, focused, and most ELSS funds usually are).
The opposite — genuinely low overlap — usually means your SIPs span different market caps (large vs mid vs small) or different styles (active vs index), so they're fishing in different ponds.
How Much SIP Overlap Is Too Much?
Some overlap is unavoidable — any two Indian equity funds will share a few household names. Here's a practical framework for judging it:
For a deeper look at the right number of funds to hold, see our guide on how many mutual funds you should hold — the short version is that 3-5 well-chosen funds usually beats 8-12 overlapping ones.
How to Fix Overlapping SIPs
The good news: fixing SIP overlap rarely means selling anything. Because SIPs are forward-flowing, you can usually fix the problem by changing where future instalments go.
Redirect, don't redeem. If two SIPs overlap heavily, stop the weaker one (lower returns, higher expense ratio) and redirect that monthly amount into a different category — a mid-cap, small-cap, or index fund. Your existing units stay invested, so you avoid exit load and capital-gains tax.
Diversify across market caps. A large-cap and a small-cap fund typically overlap only 5-15%, versus 50-70% for two large-caps. Spanning the cap spectrum is the single most effective way to cut overlap.
Mix active and passive. Pair a low-cost Nifty 50 or Nifty Next 50 index fund for core exposure with one active mid- or small-cap fund for potential alpha. This avoids two active large-cap managers buying the same stocks.
Mind the tax before redeeming. If you do decide to exit a fund, remember that equity STCG is taxed at 20% and LTCG at 12.5% above ₹1.25 lakh per year, and funds may charge ~1% exit load within the first year. Redirecting future SIPs sidesteps all of this.
How to Check Your SIP Overlap
You can compare your funds' monthly portfolio disclosures by hand from each AMC's website — but with three or more SIPs you'd need to check every pair, name by name. It's slow and error-prone.
The faster way is to let a tool do the math.
Check your SIP overlap in 30 seconds
OverlapIQ lets you compare up to 10 funds at once. Add your SIP funds, hit Analyze, and you'll get a pairwise overlap matrix, per-fund uniqueness scores, and your most concentrated stock bets. Save your funds to My Portfolio and you can also track how their overlap shifts month over month — because fund managers rebalance constantly. Free, no signup.
Analyze My SIPs →Frequently Asked Questions
Can two SIPs in different funds buy the same stocks?
Yes. If both funds belong to the same category — for example two large-cap or two flexi-cap funds — they often hold 50-70% of the same underlying stocks, even when they are from different fund houses.
Does running SIPs across different AMCs avoid overlap?
No. Different fund houses still select from the same universe of top Indian companies. Three large-cap SIPs across three different AMCs can still overlap by 60% or more.
How do I check if my SIPs overlap?
Compare each fund's published holdings, or use an overlap tool such as OverlapIQ that calculates the pairwise overlap percentage between your funds in a few seconds.
Should I stop a SIP if it overlaps too much?
Often it is better to redirect the new SIP instalments into a different category rather than redeem existing units, which avoids exit load and capital-gains tax on what you already hold.
How much SIP overlap is acceptable?
Below 30% overlap is healthy. Between 30% and 50% is borderline and depends on whether the funds differ in market cap or style. Above 50% means you are largely paying two expense ratios for one portfolio.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Consult a SEBI-registered investment advisor for personalised advice.