Why does NPS invest primarily in large-cap companies? | Ashish Aggarwal
Ashish Aggarwal, Director of Acube Ventures, notes that NPS aims to maximize returns for investors while minimizing risks, a prudent strategy for India's large nationwide pension system. Thus, NPS funds predominantly allocate assets to equities of reputable, established large-cap companies along with sovereign and debt instruments for stability.
While small and mid-caps can experience exciting short-term growth, they often falter in governance and liquidity, explained Ashish Aggarwal Additionally, overseeing millions of diverse investments operationally would be a tremendous undertaking, according to Ashish Aggarwal.
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