India's biggest life insurance company which is also state-owned has said that it will be making a total investment of Rs. 2 trillion into the Indian equity and bond markets.

The announcement was made by the Chairman of LIC, TS Vijayan. He said that the total investment will be directed by the kind of premium collection that it is able to make.

He said, "If the premium flow is more in unit-linked insurance policies, our incremental investment into equities will be higher and if the premiums are coming more from the traditional plans, naturally the incremental investment will be more in government securities, corporate bonds, debt etc."

One must remember that some of the main disinvestments during the year were saved because of the buying done by LIC. It has not only put money into the IPOs but has also made buyouts in the bond markets as well.

While Vijayan refused to tell what would be the ratio of debt and equity, he did specify that it would be lesser than the last year.

It has already put in Rs.390 billion for the first quarter ending June 30.