LIC - The Mammoth Investor in Equities

Life Insurance Corporation of India (LIC) is one of the largest institutional investors in equity in India. It's holdings in various companies span from FMCG to Banks to Heavy Industries. LIC's shareholding in some of the companies as on 30th Sept, 2014 has been highlighted below:



It's very interesting that while LIC policy holders earn only 3% to 12% returns on their insurance policies (depending on the insurance policy taken), LIC itself is heavily invested in equities through which it tries to earn greater returns. This underscores two things:

• Investing in equities can prove to be extremely rewarding over the long term provided stocks are selected after thorough due diligence. We, at Prospero Tree, help our readers with stock recommendations through Investing ideas.
• It's always advisable to opt for a term plan rather than insurance policies like ULIPs that combine investment gains coupled with life insurance. You can read our articles on the same below:
   

Insurance - Wisdom is simplicity

ULIPs - Low on Insurance, High on Charges

Insurance - Innovation and Complexities

 

Share On

         910