New Delhi, Sept. 6 -- With a flexi-cap fund making up 50% of your portfolio, adding another equity fund category may bring more overlap.

Investors often add another mutual fund believing they are increasing diversification. But if the new fund holds many of the same stocks as an existing flexi-cap fund, the portfolio may become bigger without becoming meaningfully different.

The September 2026 report of DSP Mutual Fund titled "NETRA - Early Signals Through Charts" highlights this potential overlap across equity fund categories.

It finds that only 25% to 36% of the equity exposure is genuinely different when another category is compared with the average flexi-cap equity portfolio.

The report's message is straightforward. "You may own m...