Musing #58: Mutual Fund (SIP) Portfolio Overlap Analyser



Being from a finance background, I made it a point to invest in SIPs early on. Over the years, while the investment amount has increased steadily, the number of funds being invested in has remained more or less constant. Hence, I need not emphasis how important it is to know where exactly the money is going.

Too often, the choice of a fund is made simply on returns and diversification is achieved by selecting a different fund class. However, it provides no indication of the extent of value creation. I prefer to keep an eye out on what's happening with my portfolio and it is not only when selecting a new fund but also for keeping tabs on what's going on with the existing investments.


My search for websites/files providing this information yielded a few options that were quite limited in nature, dispensing basic overlap information between two or three funds. Unable to find the requisite information, I decided to go on my own and create an Excel workbook that provides overlap analysis for up to six funds. The other target I had set for myself was to do so without the use of VBA, so the only permission required is to access the external data source - moneycontrol.com.

The workbook is structured in to distinct sheets for input and detailed analysis. The 'Input' sheet is pretty straightforward and is essentially a two-step process requiring the funds and investment amount to be entered along with the selection of the fund that would form the basis of checking the overlap. It would be a good idea to read through the notes prior to using the workbook. The sheet has some safeguards built in to alert the user about inconsistent inputs, like missing investment values/funds and failure to refresh the 'base fund' selection. At the same time, it is robust enough to still function immaculately when any of the selected funds are deleted.


Note that although the sheet includes funds with equity holdings from various classes, some of them do not have their holdings listed on moneycontrol.com which may cause an error illustrated above. As such, there is nothing that can be done about it. Also, to state the obvious, the default funds selected in the sheet are for illustration and are not suggestive.


The 'Analysis' sheet provides the primary analysis of the portfolio. Besides listing the fund class and the equity holdings of each fund, it provides the percentage overlap of the base fund with all the other funds in the portfolio, both, in terms of the number of stocks and the value invested. The charts in turn provide 'Top 10' visualisations for individual stocks as well as the different sectors.


The 'Detail' sheet provides the tabular information that form the basis of the analysis and lists all the values as against only the Top 10 in the charts.


The 'MFx' sheets list the holdings of each fund, as retrieved from moneycontrol.com and is subsequently used for the overlap calculations.


Finally, the 'List' sheet is a list of the funds retrieved from moneycontrol.com and covers the various equity fund classes. It is easy to add any new funds to the list in the specified format and the information can be scraped en masse from the MoneyControl site.

As is often the case, I have created something to primarily fulfil my needs but with the intention of sharing it with other netizens. Consequently, I am open to any suggestions for improvement which you may leave in the comments section.

Link: Download from Google Drive

Tutorial #16: The Securities Trade Lifecycle


Trade is one of the basic tenets of investment banking. Yet, detailed information on its lifecycle is not easily forthcoming on the web. There are of course articles available describing the same at a high level, though it seems that few agree on the exact terminologies and sequence to be used. Books on the other hand, even the eponymous ones, divert to discussing trade strategies rather than the lifecycle itself.

They key then seems to be in garnering the details of the process. Having gone through a number of sources, I can recommend the tutorial available on Udemy. It covers the lifecycle starting from trade execution, though some would prefer to start from sale or trade initiation. What's important is that it covers all the steps in sequence and builds up on the details chronologically with illustrative examples. This facilitates a far better understanding than what most words would do.

It is certainly not free, but worth its price or indeed a trial. The tutorial spans over 22 videos (with accompanying PDF files) and may take up to 4 hours of your time, if you are running it an 1x speed. I found it convenient to follow even at 1.6x, so your mileage may vary. While this may sound more of a review than a tutorial, especially compared to my other ones, I found it best to classify it as one since it is aimed at promoting learning more than anything else.

Musing #35: An investor's dilemma

Time is an ethereal dimension. Here on earth, it is imperceptible and yet so vital. None so heed it as the sanguine investor. This is not to say that we shouldn't be optimistic about the current state of markets, which is at an all-time high. However, it comes with its own set of dilemmas that we need to address.

On one side, there are those who can't wait to exit for this is as much faith as they have in the markets. They may be right in assuming so, considering the fact that the market always seems due for a correction when there is a spurt and things seem too good to be true. Doing so however, is dependent on when you entered the market and what your needs are. Too often, the only reason for exiting is that you are finally in to the black.

On the other hand, I have friends who can't bear to see the single digit returns from their fixed deposits and in their desperation, have broken the same to invest in to the market at any costs. For them, is it unreasonable to expect the market to hit 50,000 after the next general elections? I think not. But, does it make sense to do so when you have an imminent expense hanging over your head within the next year? Is it rational to expect your money to grow by double digits before the year is over? The answer to both is no but few would feel the need to justify these decisions.

It is inevitable that for most, judgements are based on the past. History is a great teacher but you need to know which lessons to learn and which to ignore. The financial crisis of 2007/08 was a humbling lesson for many and is bound to repeat itself, for greed will manifest itself in another form. Most of the lessons learnt are also steeped in the past and wouldn't catch up to the future in the way ingenuity would. Hence, the only insurance is to be able to ride through the bumps.

The best investment strategy then is to have a strategy. Setting up a target, time horizon and understanding the means to get there is all that it takes, all of which requires immense discipline. Hence, the oft repeated suggestion of starting out with a SIP at the earliest is still the best one. It relieves you of the most important decision that one has to make - timing the market. Time, the most agnostic of all entities. Yet, it is with time that your accumulated fortune compounds and helps you attain the target that seemed too farfetched in the past.

However, investment discipline also involves setting up the right mix of products along with the horizon. Contingencies need to be provided for which the pithy savings account comes to the fore. Short term fixed deposits provide the stability needed to meet near term life goals that cannot be gambled with. Then, there is the safe discretionary investment, the good EMI that you need to forget altogether when putting in to a long-term SIP along with regular bumps that become possible as you move along in life. Lastly, if you are up to it or really have a person dedicated to it, comes the direct investment in the stock market. One must understand that all expert opinions are lagging indicators and hence not the guidance you should take up when doing in alone. Instead, leave it to the experts.

As is the case with life, simplicity and planning is the gateway to successful investment.