ICICI Prudential Nifty Auto Index Fund vs Nippon India Nifty Auto

ICICI Prudential Nifty Auto Index Fund and Nippon India Nifty Auto show 98.8% overlap, which is high in MFXray's current universe. This pair ranks #1,650 out of 5,000 analyzed combinations. The catch is that this is a cross-AMC pair, so changing fund houses here does not really change the portfolio underneath.

The overlap is being driven mainly by automobiles exposure, which alone contributes 75.8% of the shared book. The biggest common positions are Mahindra & Mahindra Ltd., Maruti Suzuki India Ltd., and Bajaj Auto Ltd.. Those names account for a large chunk of why the two funds move similarly.

ICICI Prudential Nifty Auto Index Fund still keeps some identity through very little that stands apart in the top holdings, while Nippon India Nifty Auto leans on very little that stands apart in the top holdings. That matters because the common core is doing most of the heavy lifting, and the unique sleeve around it is relatively small.

The practical takeaway is simple: holding both funds is likely giving you more duplication than diversification. This is the kind of pair that deserves a second look before you assume you are spreading risk.