If you hold both direct stocks and mutual funds, the analyser unfolds mutual fund holdings into their underlying stocks.

Concentration risk checks how much a single stock contributes to your portfolio. If one stock contributes too much (for example above 40%), it may be marked Red.

Overlap risk checks if you own the same stock both directly and through mutual funds or ETFs. Overlap is calculated based on the minimum weight between direct holding and MF exposure. High overlap may result in an Amber or Red rating.

Sample calculation is added below:

This helps you avoid unknowingly taking too much exposure to a single company.