RupeeCase
Systematic 101 . Concentration . 3 of 3
The Lesson
Diversification is a math fact. Not a feeling.
Three checks to know if your "diversified" portfolio actually is.
01
What percent of your portfolio is in the top 10 names?
If your largest 10 holdings are more than 50 percent of the total, you are not diversified across 50 names. You are concentrated in 10. Cap-weighted index funds are 58 to 65 percent in the top 10 by design.
02
Are you choosing the rule, or is the index calendar choosing for you?
A cap-weighted fund quietly buys more of whatever already went up. It compounds the existing winners. An equal-weighted rule rotates by a different signal . momentum, fundamentals, factor . that you actually pick.
03
What is your average position size on the smaller names?
In a NIFTY 50 fund, the average position outside the top 10 is roughly 1 percent. That is too small to matter on the upside, and too small to learn from on the downside. Real diversification means each position is large enough to teach you something.
If your "50 stock" portfolio is actually 10 stocks plus 40 footnotes, change the rule, not the wrapper.
RupeeCase Nifty rotates 10 names by the rule. Not by the index.
rupeecase.com / strategies / rupeecase-nifty
Tanmay Kurtkoti . Builder of RupeeCase
Source . NSE BhavCopy . Apr 2026