Investors today see mutual funds as a reliable way to grow their wealth. However, many investors unknowingly invest in multiple mutual fund schemes that hold the same stocks. This results in portfolio overlap, which can limit the potential for diversification. This is where   top mutual fund software in India   becomes a game-changer for Mutual Fund Distributors (MFDs). It can help identify common stocks between two schemes, helping investors avoid overlap and optimize their portfolios. Challenges MFDs Face with Portfolio Overlap Mutual Fund Distributors often face challenges when it comes to advising clients on building diversified portfolios. Here are some common challenges: Repetitive Investments : Investors frequently end up holding the same stocks in multiple mutual funds, which defeats the purpose of diversification. Lower Portfolio Growth : When a portfolio has several overlapping stocks, the expected growth can be limited because the portfolio isn't exposed to a broad range