What makes a focused fund different?

Equity mutual funds can invest in any number of stocks, but focused funds have a cap of 30 stocks. A focused fund ensures that the fund manager is backing his high-conviction ideas with sizeable allocation. In regular diversified funds, the allocations can be diluted by just increasing the number of stocks in the portfolio. Regular diversified funds like large cap, mid cap and small cap have restriction on the universe of stocks they can invest in and to what extent. But, focused funds have no such restriction. The fund manager can buy any stock whether it is large cap, mid cap and small cap, without any limit.