Topics to discuss:
1. Portfolio overlap and over-diversification have been discussed many times — can you explain the difference between the two?
2. How can we avoid portfolio overlap? What is the method?
3. How can investors ensure that:
The fund they are adding to the portfolio is the right one?
The fund manager has taken the right calls?
There isn’t a better fund available than the one selected?
4. How much portfolio overlap is acceptable and how much is not?
5. Does overlap happen only in the core portfolio, or can it occur in the satellite portfolio as well?
6. Between a fully diversified fund and concentrated/sector-specific funds where can investors expect better returns?
7. How does overlap reduce returns?

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by Amit Kukreja