ICICI Prudential Nifty 200 Momentum 30 ETF vs Kotak Nifty 200 Momentum 30 Index Fund

These two funds – ICICI Prudential Nifty 200 Momentum 30 ETF and Kotak Nifty 200 Momentum 30 Index Fund – are practically mirror images of each other, ranking 224th out of 5000 pairs we’ve analysed. With 99.95% overlap, this is as close as it gets. Both aim to replicate the Nifty 200 Momentum 30 index, explaining the near-identical portfolios.

The high overlap isn’t surprising, but it is dominated by a strong Finance sector concentration (over 20% combined). Key stocks like State Bank of India, Shriram Finance, and Bajaj Finance contribute significantly to this similarity, with weights being almost exactly the same in both funds. Eicher Motors and Hindalco also feature prominently.

Interestingly, both funds have no unique holdings. This means you’re not getting any distinct bets or diversification benefits by owning both. They are essentially the same strategy delivered by different AMCs – ICICI and Kotak. This cross-AMC duplication is unusual at this level.

Such high overlap flags a clear diversification risk. You’re not spreading your investment across different approaches. If the Nifty 200 Momentum 30 strategy falters, both funds will likely suffer similarly. Consider if you truly need exposure to both when they offer almost identical outcomes – you’re paying two sets of fees for essentially one investment.