When it comes to investing, the age-old adage of diversifying your investments holds true for generations. Diversification is crucial for managing risk and enhancing returns in any investment portfolio. One essential tool for achieving diversification is sector caps, limiting exposure to any single industry, sector, or super sector in your portfolio. In this blog, we'll explore the significance of sector caps, focusing on a reasonable cap of 15%. We'll also understand how even historically-robust models like the iQ Sensitive Super Sector or iQ Defensive Super Sector can benefit from such limitations.