LIC Investment Portfolio

All in all LIC investment portfolio worth is approx. Rs 8lakh crore. There is a plan to add stocks worth Rs 60,000 Crore in 2013 in LIC investment portfolio.

LIC is committed to invest almost 20% of its portfolio in stock market.

It is point worth noting that in May’2011, LIC invested nearly Rs 5 thousand crore in Indian stock market.

So LIC invested portfolio is starting to weight more in equity.

Earlier, LIC used to invest majorly in risk-free investment options only.

But this change of stand of LIC, to increase their exposure of stock market, will prove to be a win-win situation for all.

Currently the rules stipulated that LIC invests minimum 50% of their investment portfolio in Government securities.

But now few unit linked plans of LIC are allowed to invest in equity with limit extending till 80%.

This remarkable change in policy by LIC, to invest more in stock market is very good. Day by day LIC investment portfolio is increasing its doors for stock market.

LIC invest in stock market under its Unit Linked Plans (ULIP’s). In year 2011-12, LIC increased its holdings in government banks like Allahabad Bank, Union bank of India, UCO bank, Syndicate bank.

LIC also increased its holdings in some private banks as well, like Axis Bank and Yes Bank. LIC has also increased its stake heavily in ONGC, which is again a very big public sector undertaking.

LIC Investment Portfolio of their Unit Linked Plans (ULIP) > Endowment Plan

Endowment plan includes both investment benefits and insurance cover.

Broadly speaking there can be 4 types of endowment plan. Depending on ones priority, wither of the 4 types of endowment plan can be selected.

If a persons priority is investment he can select a growth fund.

If a persons priority is strictly insurance cover that he/she can select a bond fund.

BOND FUNDS > LOW RISK

SLPORTFOLIO COMPOSITIONFUND ALLOCATION
1Government Securities or Corporate Debt> 60%
2Money Market< 40%
3Stock Market0%

SECURED FUNDS > MEDIUM RISK (STEADY INCOME)

SLPORTFOLIO COMPOSITIONFUND ALLOCATION
1Government Securities or Corporate Debt> 45%
2Money Market< 40%
3Stock Market15%-55%

BALANCED FUNDS > MEDIUM RISK (BALANCED GROWTH)

SLPORTFOLIO COMPOSITIONFUND ALLOCATION
1Government Securities or Corporate Debt> 30%
2Money Market< 40%
3Stock Market30%-70%

GROWTH FUNDS > HIGH RISK (LONG TERM GROWTH)

SLPORTFOLIO COMPOSITIONFUND ALLOCATION
1Government Securities or Corporate Debt> 20%
2Money Market< 40%
3Stock Market40%-80%

LIC Investment Portfolio of their Unit Linked Plans (ULIP) > Flexi Plan

There is a very unique product of LIC called as Flexi Plus scheme which is also a type of unit linked plan.

Under this plan the insurer gets not only death benefits but also maturity benefits.

The maturity benefits will be obtained, at the end of the tenure, even if the policyholder is still alive.

A person who would like to buy this scheme should consider it as a long term savings scheme with small exposure to equity. LIC portfolio of FLEXI plan would look like this:

DEBT FUNDS > LOW RISK

SLPORTFOLIO COMPOSITIONFUND ALLOCATION
1Government Securities or Corporate Debt> 60%
2Money Market< 40%
3Stock Market0%

MIXED FUNDS > MEDIUM RISK (STEADY INCOME)

SLPORTFOLIO COMPOSITIONFUND ALLOCATION
1Government Securities or Corporate Debt> 45%
2Money Market< 40%
3Stock Market15%-25%

Unit linked plans are schemes which are designed specifically for the purpose of capital protection.

Unit linked plans are designed by LIC in a way that it yields decent returns to investors.

The decent returns means that at least the yield should beat inflation.

With this objective in mind, you can see that LIC Investment portfolio is well loaded with equity.

Investment portfolio of LIC NOMURA MF Equity Fund (G)

SLEQUITY% IN PORTFOLIO
1Infosys8.85
2ITC8.44
3Reliance7.48
4HDFC Bank7.13
5ICICI Bank6.81
6Larsen6.03
7SBI4.22
8Wipro3.65
9Tata Motors3.52
10M&M2.9
11Bharti Airtel2.81
12Bajaj Auto2.66
13Cipla2.58
14Kotak Mahindra2.21
15Persistent2.12
16ONGC2.1
17Bosch2.09
18Petronet LNG2
19Colgate1.99
20Lupin1.97
21Ranbaxy Labs1.73
22Zee Entertain1.46
23Tata Steel1.45
24SKF India1.36
25BPCL1.22
26Power Finance1.21
27Tata Power1.09
28Crompton Greave1.08
29Canara Bank1.03
30Coal India0.96
31Idea Cellular0.94
32Sun Pharma0.91
33Bank of India0.91
34Axis Bank0.66
35Dr Reddys Labs0.53
36VST0.42
37Hind Zinc0.39
38Nestle0.29
39Pidilite Ind0.25

Be the first to comment

Leave a Reply

Your email address will not be published.


*