Investing in
different mutual funds does not automatically mean portfolio diversification if
they hold the same securities in their portfolio. Portfolio overlap between
different funds becomes a crucial input for investment decisions to mitigate
concentration risk. The Multiple Portfolio Overlap report analyzes the extent
to which different mutual funds hold overlapping portfolios of stocks. It
provides data on the degree of overlap between different mutual funds to avoid
investing in funds that have similar or overlapping portfolios.
