New Delhi: India’s largest insurer, the Life Insurance Corporation of India (LIC), continues to play a defining role in the country’s financial markets, with its equity investments witnessing exceptional long-term growth over the past decade. The state-run insurer, which manages public funds on a massive scale, now oversees assets worth nearly ₹55 lakh crore, out of which more than ₹15 lakh crore is deployed in equities.
According to available data, LIC’s exposure to the stock market has risen sharply since 2014. A decade ago, the corporation had invested close to ₹1.5 lakh crore in equities. By 2020, this figure had jumped to around ₹3 lakh crore, marking a fivefold increase in just five years. By 2024–25, the investment surged nearly ten times, highlighting the insurer’s aggressive yet calculated long-term strategy.
Experts say such rapid expansion in equity exposure is unusual in traditionally conservative institutions. The growth underscores LIC’s strategic shift towards long-term value creation, backed by disciplined deployment across stable blue-chip companies and high-growth sectors.
BFSI Emerges as LIC’s Largest Investment Avenue
A breakdown of LIC’s top 50 equity holdings, which together represent 80% of its total equity investments, reveals a clear sectoral tilt. The Banking, Financial Services and Insurance (BFSI) sector accounts for the highest allocation at 29%, reaffirming LIC’s preference for financially resilient and dividend-generating companies.
Significant exposure is also seen in consumer-facing and industrial sectors such as:
| Sector | Investment (₹ crore) | % Share |
|---|---|---|
| Automotive | 68,102.06 | 5% |
| BFSI | 366,306.76 | 29% |
| Consumer Goods | 180,217.74 | 14% |
| IT | 181,113.96 | 14% |
| Infrastructure | 60,618.97 | 5% |
| Pharma | 35,450.52 | 3% |
| Oil & Gas | 197,404.13 | 16% |
| Telecom | 47,585.73 | 4% |
| Metals, Mining & Commodities | 105,333.98 | 8% |
| Defence & Aerospace | 7,346.37 | 1% |
| Grand Total (Top 50) | 1,249,480.23 | 80% of LIC’s total equity portfolio |
LIC’s total equity investment as of 24 October 2025 stands at ₹15,68,745.45 crore, making it one of India’s largest institutional market participants.
Long-Term Strategy Behind LIC’s Success
Analysts attribute LIC’s strong performance to its long-term investment philosophy, grounded in steady asset selection, sectoral diversity, and counter-cyclical buying. Over the years, LIC has emerged as a stabilizing force during market volatility, often stepping in as a major buyer when retail and foreign investors exit.
The insurer’s focus on secure returns aligns with the trust placed in it by millions of policyholders whose savings form the backbone of its investment corpus.
A Model for Conservative Yet High-Yield Investing
LIC’s consistent rise in equity deployment reflects a rare balance between caution and conviction. Its decade-long performance—marked by nearly tenfold growth—sets a benchmark for institutional investment strategies in India, showcasing how disciplined, long-term planning can yield substantial gains while safeguarding public funds.
