LIC IPO | Company invests around 37% of total AUM in central govt securities, 24.77% in equities

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Life Insurance Corp Of India's majority of assets under management (AUM) are invested in central government securities, followed by equities and state government securities, a draft red herring prospectus said on February 13.

LICs total AUM as of September 2021 was at Rs 39.56 trillion against Rs 36.76 trillion as of fiscal year 2021. In FY20, total AUM was at Rs 30.74 trillion.

Out of the total, 37.45 percent, or Rs 14.81 trillion are invested in central government securities as of September. In FY21, this investment was at 37.83 percent, or Rs 13.91 trillion while in FY20 it was at Rs 11.93 trillion or 38.80 percent of its total AUM.

Around 24.77 percent of the AUM, or Rs 9.80 trillion, have been invested in equities as of September while in FY21 total equity investment was worth Rs 7.97 trillion, or 21.67 percent of its total AUM. In FY20, around 15.02 percent of total AUM, or around Rs4.62 trillion invested in equities.

State government securities investment was around Rs 9.74 trillion or 24.62 percent of the total AUM as of September. In FY21 and FY20, this share was around 26.16 percent and 29.37 percent, or Rs 9.62 trillion and Rs 9.03 trillion, respectively.

Debentures, bonds and pass through certificates was around 8.06 percent or Rs 3.19 trillion of the total AUM, and loans was at 3.07 percent or Rs 1.21 trillion. Venture funds or alternative investment funds, mutual funds and exchange traded funds investment was worth Rs 30,905.41 crore or 0.78 percent of total AUM, other approved securities was Rs 26,238.49 crore or 0.66 percent of total AUM, other investment was at Rs 14,799.29 crore or 0.37 percent of total AUM and money market instruments was at Rs 8,896.80 crore or 0.22 percent of total AUM as of September 2021.