% Concentration : Top 10 holdings
This metric represents the % portfolio made up by the top 10 holdings.
These metrics are a measure of concentration or diversification available in the strategy. Funds like sectoral funds & focused funds would have high concentration as compared to their counterparts.
For eg : In many popular focused funds, the entire portfolio is made up of 20-25 stocks where the top 10 make up for around 70% of the portfolio.
Investors who prefer a more diversified approach can use these filters to identify the concentrated portfolios available & filter them out.
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