InvestorQ : What do you thing I should do with the LIC stock?
Archita Jajjoo made post

What do you thing I should do with the LIC stock?

Niti Shenoi answered.
9 months ago

For a moment let us keep the short term concerns aside. It is clear that a lot still works for LIC. For instance, even after private players were allowed over 20 years back, LIC holds sway over 70% of the market. Also, LIC AUM at Rs40 trillion is more than the entire mutual fund industry in India. Also, the IPO was completed at a price to embedded value ratio of just about 1.1X against the median ratio of 2.3X for the private insurers. So the edge is clear.

The bigger question what should investor do with the LIC stock. If you want to own an India portfolio, you got to own LIC stock. Let me touch up on the timing as to whether this is right time to buy the stock. There are no clear answers since nobody predicts the bottoms with precision. You can safely assume that after a 13% correction, LIC certainly offers value. My suggestion is to adopt a phased approach to invest in LIC via monthly SIP approach.