RISING STOCKMARKET IN INDIA BOOSTS ULIP POPULARITY

Indian life assurers are likely to invest between $10bn and $15bn in the equity  markets this year, according to Puneet Nanda, head of investments at private assurer ICICI Prudential. “Unlike in the past, when the market monopoly Life Insurance Corporation used policyholder funds to finance the government deficit, most insures, including LIC, now channel funds into stocks”, he said. Unit-linked Investment Plans (ULIPs) permit investors to choose their asset allocation, and about 80% choose equity-linked schemes. Mr Nanda noted that the performance of the Indian stockmarket had been so spectacular that “every equity scheme generated exceptional returns. This in turn is drawing fresh investments into ULIPs”.