Active share: is your fund really active?
Aeterna Wealth · figures from our fund data, updated 12 Nov 2026
Active share is the share of a fund's portfolio that differs from its index: 0% is an index fund, 100% shares nothing with the index. A fund with a low active share charges active fees for a portfolio close to the index, and after costs it almost has to trail it. Among large cap Regular plans, the median active share is about 43%, and 2 of 25 are below 30%.
How it is worked out
For each stock in the fund or the index, take the difference between its weight in the fund and in the index; add those up and halve the total. We use each fund's latest monthly portfolio, against index funds that track its benchmark.
What we do with it
- A fund with active share below 50% (30% for large caps) and no 3-year return over its index is flagged as a closet indexer on our site, and its rating is capped.
- Active share is one input to our ratings for active funds.
What it does not tell you
High active share means different, not better. A very different portfolio can do much better or much worse than the index.
Common questions
What is a good active share?
Above about 60% for a fund charging active fees is a common guide; large cap funds are naturally lower because their universe is only 100 stocks.
Should I avoid funds with a low active share?
Look at the record first. A fund that hugs its index has little room to beat it; we prefer funds that are genuinely different and have used that to beat their index consistently.
Where can I see a fund's active share?
On its page on our site, when its monthly portfolio is available.
Want this worked out for your money?
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General information, not investment or tax advice for your situation. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
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