This main purpose of the research is to examine the selectivity and diversification component in generating the superior return for the study period i.e. April 2010 to March 2015. To achieve the major objective of the study, Fama (1972) Decomposition model is applied on a sample size of 30 companies. In the sample size, all the top 30 companies are taken which constitute the S&P BSE Sensex. The research also characterized the results on the basis of risk and return related performance measure. The study confirms that diversification and selection has significant role in providing additional value in the investment within the study period.