The country's largest insurer LIC on Tuesday said it will pump in about Rs 10,000-crore in the stock markets by March-end, taking its annual equity investment to Rs 60,000 crore this fiscal. LIC's investment in the equity market so far has already crossed Rs 50,000 crore and expect to close the fiscal (2009-10) with an investment of Rs 55,000-60,000 crore. During 2008-09, LIC invested Rs 40,300 crore in the equity market, Mr Mohanraj said. This fund infusion in the market by the country's biggest domestic financial institution boosted the sentiment at bourses, which witnessed volatility, especially after the collapse of Lehman Brothers in America in 2008.
Impact of Demonetization: · Improvement in Government's fiscal position going forward: Ø Higher benefits for the Government if lesser currency notes comes back into the system Ø Increase in Tax Reporting leading to better revenue hence better fiscal · System Liquidity to increase going forward · Inflation expected to fall further · Growth to be positively impacted over medium to long term with near term hiccups Duration Funds: In light of the above facts and expectations investors may consider long duration funds ( Reliance Dynamic Bond Fund, Reliance Income Fund & Reliance Gilt Securities Fund ) as these funds would benefit on further easing of yields over next 12 to 18 months. 'Reliance Dynamic Bond Fund' aims at generating returns even in stable interest rate markets by exploring different trading strategies. The strategy to differentiate Tactical Positions f...
