Your overlap is in the room the rule left open.
01
A 50 pct cap is not a low bar. It is the regulator conceding that two funds sharing half their holdings is common enough to need a rule at all. That is the baseline, not the exception.
02
The cap targets thematic and value funds. It steps around large caps, which is exactly where a normal portfolio doubles up. Three diversified funds all anchored in the same eight mega caps stay untouched.
03
So you still have to look. Pull the top ten of every fund you own, lay them next to each other, count the names that repeat. That count is your real diversification. The number of funds is not.
A fund house now has to prove its thematic schemes are less than half the same. Nobody is going to run that check across the four funds sitting in your account. That one stays with you.
Lay your funds side by side and count what actually repeats
https://rupeecase.com/compare