RupeeCase
Education . Portfolio Construction . 3 of 3
The Lesson
Run the audit on your own stack.
Three questions. Five minutes. Whether you hold mutual funds, an ETF basket, or stocks directly, the math behind diversification is the same.
01
How many stocks do you actually own?
Collapse all your funds, ETFs and direct holdings into one tickers list. Count uniques. Most retail investors find far fewer real names than the count of products they hold suggests.
Test . Pull the latest holdings page for each fund. Dedupe. Count.
02
What is your top-10 concentration?
Sum the weights of your top 10 names by aggregate exposure across the stack. If it is over 40 percent, the rest of the long tail is mostly cosmetic. The diversification headline number is hiding a concentrated outcome.
Test . Sort by aggregate weight. Take the top 10. Add the percentages.
03
What percent of your money is doing real work?
Anything weighted under 0.5 percent is admin, not allocation. Past 30 names the diversification curve goes flat. Names beyond that point are buying you cost, brokerage and the appearance of safety. The principle is concentration math, not fund count.
Test . Count names sized over 1 pct. That is your real portfolio.
More funds is not more diversification. Past a point it is just admin.
Run the MF-stack audit on your own portfolio. Compare the diversification math against a 20 to 30 stock alternative.
rupeecase.com / compare
Tanmay Kurtkoti . Builder of RupeeCase
Source . Evans-Archer 1968 . Statman 1987