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Life Insurance - How safe is my money with LIC?

21 Jan 2003

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The answer is - Absolutely Safe and earning much more for you.

How? Take a look.

Investments in high performing Stocks:

The Life Insurance Corporation, to multiply its investments has entered the stock markets in a big way. It is investing Rs 400-500 crore every month judiciously. And this financial year, it has invested more than Rs 1,800 crore. Its equity investment accounts for 10 per cent of its total investments.

As per figures from Asia Insurance Review, LIC invested an aggregate Rs 245,387 crore (US$51.1 billion) while the private life insurers invested a total of Rs 1,481 crore (US$308.76 million) in 2001-02 in various investment revenues. Private insurers' investments include Rs 674 crore in Central government securities and Rs 777 crore in state government and other guaranteed securities.

Investment in Property:

The corporation gains five to six percent returns on its property investments, which has a book value of around Rs 1,000 crore.

Other investment avenues:

The corporation has worked out a three-pronged strategy to multiply its investments. Other than trading in short-term paper it will invest in double-A (AA) rated corporate paper.

It may be noted that LIC marketed 2.32 crore policies last year with premium income of Rs 14,844 crore. In other words a growth of 137 per cent. The total revenue of LIC was to the tune of Rs 70,000 crore. The corporation handles about 12.5 crore policies every year.

Inspite of the entry of private insurers LIC was able to retain 98 per cent of the expanded market share, while the combined performance of the private companies was just two per cent.

Source: DWT BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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