Experts say mutual fund overlap is acceptable in some cases
In short
Mutual funds can own some of the same stocks, and that is not always a problem. The reporting says overlap is fine when the funds serve different jobs or take different risks.
It matters because too much overlap can leave investors more exposed than they think. The article does not name any funds or say how much overlap is too much.
What the reporting says
Mutual-fund portfolio overlap can be acceptable when schemes have different strategies, risk profiles or portfolio roles, according to the reported expert view. The same reporting warns that excessive overlap can create concentrated exposure even for investors holding multiple funds. The source does not name any specific funds, stocks, or quantitative overlap level, so the practical cutoff remains unknown.
Why it matters
The reported guidance says portfolio overlap between mutual funds is not automatically bad if the schemes have different strategies, risk profiles or roles in a portfolio. It becomes a concern when overlap is excessive and creates concentration risk for investors who think they are diversified. The source does not identify any funds, holdings or thresholds, so the warning remains general.