The stock portfolio of LIC has outperformed the benchmark index in last 3 years as well as in the current calendar year by a wide margin.
An index of LIC’s top 100 stock holdings has given an 89% return on an absolute basis since September 1, 2014 against Sensex’s absolute returns of 68 % and BSE-100’s absolute returns of 87 %.
“LIC is one the savviest and genuine contra institutional investor in India as their policies which run for decades allows them to invest for very allows them to invest for very longer period,” said Jay Bodke, CEO, Prabhudas Lilladher. “They buy quality stocks when there is a panic in the market and sell those shares in the peaks.”
Currently, LIC holds stakes in nearly 375 listed companies worth Rs 5.14 lakh crores.
LIC’s top midcap bets like Bajaj Finserv, HPCL, Britannia, Ashok Leyland, Bharat Electronics, Piramal Enterprises have gained over 400 % in the past 3 years.
However, most of LIC’s investments in the PSU stocks have been disappointments.
In FY16, LIC had booked profits in stocks worth Rs 11,000 crores. Thanks to higher profit from its huge portfolio, LIC has decided to pay 40 % higher bonus and dividends to the government and its customers for 2016-17.
