Max Life Insurance Company on Wednesday said it prefers large-cap indices over mid and small-caps for comfortable growth.

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In an exclusive interview with Mihir Vora, director, and chief investment officer (CIO) of Max Life Insurance, Vora pointed out the substantial inflow of money into mutual funds and portfolio management services (PMS). This influx of investments indicates a growing confidence among investors in these financial instruments.

The mutual fund industry's popularity has been on the rise, driven by ease of investment, professional management, and potential for attractive returns. Similarly, PMS, catering to the needs of high-net-worth individuals, has also witnessed significant interest due to personalized investment strategies and tailor-made portfolios, he said.

"The fact is that so much money is coming into mutual funds and the PMS, alternative investment funds (AIFs), most of them are focused on mid and smallcap space. So, retail and HNI investors are chasing performance which is not necessarily a good idea at all times. If I look at the overall valuations and growth equation, the large-cap indices like the Nifty or Sensex give me more comfort," Vora said.

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