DSP Nifty Top 10 Equal Weight Index Fund vs Kotak Nifty Top 10 Equal Weight Index Fund

These two funds, DSP Nifty Top 10 Equal Weight and Kotak Nifty Top 10 Equal Weight, are practically mirror images of each other – boasting a 99.5% overlap, ranking 1497th out of 5000 fund pairs we’ve analysed. This isn’t surprising given they both track the same index, but the sheer extent of duplication is noteworthy. The dominant driver is a heavy concentration in the top 10 Nifty companies, predictably.

The overlap is heavily concentrated in the banking sector, accounting for over 43% of the shared portfolio. Axis Bank, ICICI Bank, Kotak Mahindra Bank, and HDFC Bank are key stocks driving this similarity, alongside Larsen & Toubro. Weightings in these stocks are almost identical across both funds – look at the near-identical figures for Axis Bank (12.21% in DSP vs 12.17% in Kotak).

However, ‘unique’ holdings are non-existent in either fund, reinforcing the point. Both AMCs are simply offering access to the same underlying basket of stocks. While this isn’t inherently bad, it does mean you’re not achieving any diversification benefit by holding both funds.

With such a high overlap, you’re essentially doubling down on the same bets. Consider if you truly need two ways to play the top 10 Nifty companies. If your portfolio is already heavily weighted towards large-caps, adding both these funds could exacerbate concentration risk. Choose one based on cost or AMC preference, and focus on diversifying elsewhere.