Archive · 30 Jul 2026
Large-Cap Funds Mirror Nifty 50, 90% Sector Overlap
A study by DSP Mutual Fund looked at big mutual funds that invest in large companies in India.
It found that most of the money in these funds is put into the same sectors as the Nifty 50, which is a big stock market index.
About 90% of the sector mix is the same.
The biggest funds are even more similar, with 64% of their stocks also in the Nifty 50.
Only 42% of the stocks are chosen by the fund managers to try to beat the market.
This means that if you invest in a large-cap fund, you are getting a lot of the same exposure as if you bought the Nifty 50 index fund.
The study shows that it is hard for these funds to offer a lot of extra value over the index.
90% of sector allocation in median active large-cap fund matches Nifty 50.
Top 10 largest large-cap funds have 64% portfolio overlap with Nifty 50.
Median fund weightings are close to Nifty 50 across most sectors, with biggest deviation in consumer discretionary and energy.
58% of holdings in large-cap funds are also in Nifty 50, leaving 42% as active bets.
Larger funds tend to align more closely with the benchmark, narrowing active vs index distinction.
- Who
- DSP Mutual Fund
- What
- study on sector and portfolio overlap between active large-cap funds and the Nifty 50 index
- When
- 30 June 2026
- Where
- India
- Why
- to assess the extent of active management versus benchmark replication
- Median sector overlap
- 90%
- Top 10 fund portfolio overlap
- 64%
- Data date
- 30 June 2026
- Largest sector weight (Financials)
- 34.5% in funds vs 36.8% in Nifty 50
- Energy sector weight
- 5.8% in funds vs 9.8% in Nifty 50
- Holdings overlap
- 58% of large-cap fund stocks are in Nifty 50
- Active bets outside index
- 42% of holdings