Investment Tips- FOCUSSED PORTFOLIOS MEANS HIGHER CONVICTION
Since you have only a number of stocks in your portfolio, they tend to be focused on few sectors. This displays conviction of your portfolio to those growing sectors and provides a qualitative advantage over other portfolios with stocks from almost all the sectors which may or may not grow.
For example, if your portfolio was heavily invested in housing finance and construction sectors then you would have surely made huge profits in last 2 years since we have seen the pickup in the sector and the government spending has also increased in the sector giving it great future prospects for growth. But on the other hand, if you had invested in the Petroleum, FMCG, IT or Pharma sector you could not even beat the Sensex returns.