New Delhi, July 27 -- Many investors diversify their equity mutual fund investments across categories such as flexi cap, large & mid cap, multi cap, and large cap funds. However, investing in different categories does not necessarily mean gaining exposure to a wider set of stocks.

A Value Research analysis has found that several equity mutual funds with different investment mandates have significant portfolio overlap. In one instance, two funds from the same asset management company (AMC) share 79.4% of their holdings, suggesting that category labels alone may not accurately reflect the extent to which the portfolios differ.

According to the Value Research study, Bank of India Large & Mid Cap Fund and Bank of India Multi Cap Fund have t...