Why it matters
Schemes from one fund house often share a research team and an investment style, and sometimes a fund manager. Their holdings can overlap more than their names suggest, and a client spread across six schemes from one house may own the same companies several times over.
There is operational concentration too: one house’s processes, one house’s decisions, and one place where a problem would touch most of the portfolio.
How to measure it
Add up the value held with each fund house and divide by the whole portfolio. It is a simple share, and grouping the holdings by fund house in a review shows it without any arithmetic.
Look through, not only at labels
The fund house is one lens. Two different houses’ large cap funds can hold many of the same companies, so concentration by house and overlap by holding are different questions. Both are worth asking.
The limit is yours to set
SEBI limits how much a mutual fund scheme may hold in a single company. It does not limit how much an investor may hold with one fund house.
A cap, say no more than a quarter of the portfolio with any one house, is a policy you agree with the client and then measure against.
When to act
Concentration is not wrong in itself. A client may prefer a house they trust. What matters is that it is a choice, recorded, rather than an accident of which fund was sold when.
Sahi Capital measures each client’s share with every fund house against the cap that client agreed, and looks through to the companies the funds hold.