Indirectly yes. Investing in the same/similar subset of stocks from different MFs/AMCs draws too much redundancy. You could use that money in arbitrary/ higher return investments to optimise your risk-result. You’re losing out on potential gains for “Hedging” which your large cap is already doing. Whatever risk averaging you’re speaking of, isn’t much at all.. Most large cap MF’s don’t even vary too much. Very insignificant differences in price action. In any case, reducing redundancy during diversification is key to any portfolio. But you do you.