Answer transcript: Don't look at holdings. Look at long term returns and how volatile they have been and this should be your primary guidance. If you look at the large-cap universe, you will come across 70-80 funds. 20-30 of these will not even able to match the return of the index. In the middle, there are index funds and then there are the long-term winners. These funds are able to beat the benchmark by 8-9% annually over a 5-10 year period. At any point, their portfolio looks alike.
Fund managers add great value by keeping away from some stocks and emphasising on others. Don't look at portfolios, because all large cap portfolios will always look alike.