Every analysis published on Tequity uses the same underlying data and methodology. This page documents exactly what we measure, where the data comes from, and what we exclude, so any reader can reproduce our numbers or compare them against other sources.
Data source
All fund holdings data is sourced from AMFI's monthly portfolio disclosures — the official portfolio files that every Indian mutual fund is required to publish at amfiindia.com within 10 days of month-end.
Market cap classification uses AMFI's official bi-annual market cap list, which ranks all NSE/BSE-listed stocks by their six-month average full market capitalisation. The December 2025 edition of this list applies to all analysis published for the January–June 2026 reporting period.
Fund universe
Our analysis covers all SEBI-registered active equity funds in the relevant fund category. We exclude:
- Index funds and ETFs
- Fund of Funds (FoFs)
- Closed-ended schemes
- Funds with less than three months of operating history
This ensures comparisons reflect genuine active management decisions, not passive tracking or structural quirks.
Market cap classification
AMFI's list ranks all eligible stocks from rank 1 upward by six-month average full market cap. The classification follows SEBI's categorisation circular:
| AMFI Rank | SEBI Classification | Common Label |
|---|---|---|
| 1–100 | Large Cap | Largecap |
| 101–250 | Mid Cap | Midcap |
| 251 and above | Small Cap | Smallcap |
| Not ranked / unlisted | Not classified | Other / Unclassified |
A stock's classification is fixed for the reporting period based on the applicable AMFI list. When a stock moves between classification bands across list editions, its category changes with the new list, not intra-period.
Metrics
Portfolio Concentration — Top-1 % and Top-5 %
Top-1 % is the weight of the single largest holding in the fund's equity portfolio, expressed as a percentage of total equity assets. A top-1 of 15% means one company accounts for 15 paise of every rupee invested.
Top-5 % is the combined weight of the five largest holdings. This is the most widely used concentration measure and is directly comparable across fund categories and time periods.
Both metrics are computed from declared equity holdings only. Cash, debt instruments, and derivatives are excluded from the denominator.
Gini Coefficient
The Gini Coefficient is a statistical measure of inequality, applied here to measure portfolio weight distribution. A Gini of 0 means all holdings carry equal weight. A Gini of 1 means 100% of the portfolio is concentrated in a single stock.
In practice, well-diversified active equity funds typically show a Gini between 0.30 and 0.50. High-conviction funds and sectoral funds frequently exceed 0.55.
How it is calculated: Sort all equity holdings by weight in ascending order. Construct the Lorenz curve — the cumulative share of portfolio weight against the cumulative share of holdings count. Gini = 1 − 2 × (area under the Lorenz curve).
Market Cap Drift
Market Cap Drift measures how far a fund's actual large/mid/smallcap allocation differs from the SEBI-mandated minimum for its category.
SEBI requires, for example, that smallcap funds hold a minimum of 65% in smallcap stocks. If a fund holds only 58% in smallcap, its smallcap drift is −7 percentage points. A positive drift means the fund is over-allocated to its mandated segment; a negative drift means it is migrating away.
This metric is used to flag funds that may be drifting from their stated category mandate over time, a practical early warning for investors who are relying on category-consistent behaviour.
| Category | SEBI Minimum Mandate | Drift Baseline |
|---|---|---|
| Largecap | 80% in top-100 stocks | 80% |
| Midcap | 65% in stocks ranked 101–250 | 65% |
| Smallcap | 65% in stocks ranked 251+ | 65% |
| Large & Midcap | 35% each in largecap and midcap | 35% each |
| Flexicap | No minimum per segment | N/A |
| Multicap | 25% each in large, mid, small | 25% each |
Active Share
Active Share measures what percentage of a fund's portfolio differs from its benchmark index. A fund with 100% Active Share holds nothing from the benchmark. A fund identical to its index has 0% Active Share.
Active Share is only published where benchmark index constituent data is available. For funds with non-standard or proprietary benchmarks, Active Share is not reported in our analysis.
Update schedule
We publish updated analysis monthly, typically within 10–14 days of AMFI's portfolio disclosure deadline — which falls on the 10th of the month following the reporting month. For March 2026 portfolio data (due from fund houses by April 10, 2026), our analysis is published by April 20–25, 2026.
Limitations
- Holdings data reflects month-end snapshots only. Intra-month trading activity is not captured in AMFI disclosures.
- Market cap classification uses the applicable AMFI list at the time of analysis. Newly listed, suspended, or delisted stocks may not appear in the list and are categorised as "Other."
- All concentration metrics use declared equity holdings only. A fund's cash or debt allocation is not included in the denominator, which may cause concentration metrics to appear higher than the fund's true all-in allocation would imply.
- This is an independent analytical exercise. Tequity is not affiliated with any fund house or with AMFI. Our analysis is for informational purposes only and does not constitute investment advice.
This methodology was last reviewed in April 2026. For corrections or queries, write to invest@tequity.co.in.