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How Mutual Fund Software Supports PMS With USD-Based Entries

  PMS data entry has always been a core part of an MFD’s back-office work. But until recently, everything had to be entered only in INR — even when clients invested in products denominated in foreign currency. Now, with USD-based PMS entries supported directly inside your  mutual fund software , managing such investments becomes far easier, cleaner, and more accurate. This small update solves a big pain point and opens the door to better reporting, better transparency, and better portfolio tracking. Let’s break down what this really means for you and your clients. Why USD-Based PMS Entry Matters? Many high-value investors today diversify across borders. Some hold PMS products, private arrangements, or alternative investments where values are recorded in USD. Earlier, you had to convert every value manually into INR just to enter it into the system. This led to: ●    Confusion during reporting ●    Exchange rate mismatches ●    Errors in calculatio...
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How Does the Portfolio Overlap Tool Work in Top Mutual Fund Software in India?


It is important for MFDs to manage the investments of their clients efficiently. One essential tool that makes this easier is the portfolio overlap tool, available in top mutual fund software in India. But what exactly is this tool, and why is it important?

What is a Portfolio Overlap Tool?

A portfolio overlap tool allows MFDs and investors to compare two mutual fund schemes and see how much of their portfolios overlap. In simple terms, it shows the common stocks or assets between two funds. For example, if you compare two equity mutual funds, you’ll be able to see which companies both funds have invested in.

The tool not only lists these shared stocks but also tells you the percentage overlap. This means you can see exactly how much of each fund's portfolio is similar, expressed as a percentage. This detailed comparison helps in understanding if you’re unknowingly investing in the same stocks through multiple mutual funds.

Why Do You Need a Portfolio Overlap Tool?

Avoiding overlap is crucial for portfolio diversification. If a significant portion of your portfolio is invested in the same stocks across different funds, you're not truly diversifying your investments. This increases risk because if those stocks perform poorly, the impact is felt across multiple funds.

By using the portfolio overlap tool, MFDs can:

  1. Ensure Better Diversification: The mutual fund software helps identify funds that may have too much overlap in stock holdings, allowing investors to choose funds with different asset allocations.
  2. Make Informed Investment Decisions: Knowing the percentage overlap helps MFDs guide clients more effectively, suggesting funds that balance each other rather than duplicate holdings.
  3. Offer a Detailed Comparison: Not only does the tool show the common stocks, but it also provides a comparison of those stocks in detail. You can analyze how much each stock contributes to each fund, giving a deeper insight into your investments.

How Does it Work?

  1. Input the Mutual Funds: Select two or more mutual funds for comparison.
  2. View Common Stocks: The tool will display all the stocks that both funds hold in common.
  3. See the Percentage Overlap: You’ll get a percentage showing how much the portfolios overlap. For example, a 30% overlap means that 30% of the stocks in both portfolios are the same.
  4. Detailed Stock Comparison: You can also compare the allocation of each stock in both funds. If one fund holds a particular stock at 10% and the other at 5%, the tool will reflect that difference, allowing you to decide if the overlap is acceptable.

Streamlined Communication with Clients

The portfolio overlap tool not only helps in decision-making but also in communication. Once you’ve analyzed the portfolio overlap, you can generate a report that explains the findings. This report can be directly sent to the client’s email, helping MFDs maintain transparency and keep clients informed about their investment portfolios.

Conclusion

In conclusion, the portfolio overlap tool is a valuable feature of the portfolio management software. It helps MFDs and investors ensure their portfolios are well-diversified, make informed investment choices, and avoid unnecessary risks due to overlap. By using this tool, MFDs can provide better service to their clients, offering them detailed insights and keeping their portfolios balanced.

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