Jan 09, 2017 09:10 PM IST IST | Source: Moneycontrol.com

LIC to cut FY17 equity investment to Rs 50k cr, eye fixed income

Sources familiar with the life insurer's plans told Mint that due to lack of opportunities in a weak equity market, LIC will invest the surplus money earned from premiums in fixed income papers instead of stocks.

Life Insurance Corporation of India (LIC) has reduced its equity investment target for FY17 to Rs 50,000 crore from Rs 60,000 following adverse market conditions.

Two sources familiar with the life insurer's plans told Mint that due to lack of opportunities in a weak equity market, the insurer will invest the surplus money earned from premiums in fixed income papers instead of stocks.

“Around Rs 28,000 crore has been invested in equities this financial year so far by LIC. The overall investment target is intact but the target for equity investments has been revised downwards by 10-15 percent because of several factors that are currently playing on the market and stopping it from offering enough buying opportunities,” one of the sources said.

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