Life Insurance Corp. of India (LIC) will invest around the same amount in equities as it did last year, and increase its investments in debt instruments, said two people with direct knowledge of the state-owned insurer’s strategy. The two, including one LIC executive, spoke on condition of anonymity.
LIC, which invested around Rs.60,000 crore in equities last year (among the highest in the past decade), typically increases its equity investments every year. Its decision to not do so comes at a time when foreign investors are increasing their investments in Indian stocks.
The investment approach of LIC, which controls total assets worth about Rs.21 trillion and manages insurance contracts for at least 250 million people through around 300 million life policies, is a reflection of how it sees the markets.
