Life insurance firms as a group put in more than three times money in Indian stock markets than domestic mutual funds in the last fiscal. Life insurance companies collectively put in around Rs 55, 000 crore in equities as against the total investment of Rs 16,350 crore by mutual funds in 2007-08. During the same period foreign institutional investors, the darlings of Dalal Street, were net investors at Rs 53403 crore.
LIC alone has put in Rs 30,000 crore in the equity market last fiscal. Of which, according to sources, around Rs 20,000 crore came in through ULIPs and the balance Rs 10,000 crore through traditional products in the last fiscal. The entry of new players and the expansion in the distribution network of existing insurers meant an increase in sales and a corresponding jump in equity investment, said an analyst. ULIP also has a lock-in period of three years, which makes it mandatory for an investor to stay in. Bajaj Allianz Life Insurance, another leading insurer, made a net investment of Rs 5,500 crore in the equity market in 2007-08.
LIC alone has put in Rs 30,000 crore in the equity market last fiscal. Of which, according to sources, around Rs 20,000 crore came in through ULIPs and the balance Rs 10,000 crore through traditional products in the last fiscal. The entry of new players and the expansion in the distribution network of existing insurers meant an increase in sales and a corresponding jump in equity investment, said an analyst. ULIP also has a lock-in period of three years, which makes it mandatory for an investor to stay in. Bajaj Allianz Life Insurance, another leading insurer, made a net investment of Rs 5,500 crore in the equity market in 2007-08.
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