As the stock market hit new highs, the LIC has earned a record 37,000 crore profit from share sales in 2020-21, the highest in its 65-year history.
The current profit is up 44.4% from the fiscal 2020 profit of 25,625 crores from stock sales. During the fiscal year, LIC bought shares worth a total of 94,000 crores, the highest amount ever.
Mukesh Kumar Gupta, MD, LIC, stated, “We booked maximum profit by churning the equity portfolio, depending on available opportunities and also to maintain a long-term high-performing portfolio. The sale has been across sectors and driven by our focus on generating reasonable profits and available market opportunities.”
“The corporation’s investment strategy is to acquire and maintain quality assets… We also churn the portfolio to realise some profits and also switch some stocks. Our investment strategy aims to meet the reasonable expectations of policyholders along with the safety of the funds,” he further added.
