Six insurers have gone public to be met with mixed responses. Should they be in your portfolio? Himali Patel and Preeti Kulkarni look for answers.
In the last one and a half years, six insurance companies— ICICI Prudential Life Insurance, ICICI Lombard, SBI Life Insurance, New India Assurance, General Insurance Corp of India and HDFC Life Insurance— have made their debut on the bourses in quick succession.
The stocks have drawn mixed responses from investors. Three out of six stocks slipped into the negative territory (See: A Mixed Bag), after listing.
Analysts are closely watching the insurance sector, as the stocks performed below expectations and stayed far from setting the bourses on fire. The question, however, still remains: Are we too quick to judge these stocks on the basis of their short-term performance?
Analysts believe the sector will appeal to those who have patience to dig in their heels for the long haul. A report from Morgan Stanley contends that the recent announcement in the Union Budget on imposing a 10 per cent long-term capital gains tax (LTCG) on equity stocks and mutual funds has given Ulips an upper hand, which is a positive news for the life insurance sector. “Against this backdrop, life insurance products, particularly unit-linked insurance policies (Ulips), could appear relatively attractive from a medium- to long-term investment perspective. Taxation of insurance products is governed by Section 10 (10D), where income is tax free in the hand of the investor at the time of withdrawal… it should benefit ICICI Prudential Life Insurance and HDFC Life Insurance,” the report noted.
Think long-term
Emerging out of the long shadow of uncertainty – hurdles in insurance regulations and clearance of the 2015 Insurance Laws (Amendment) Act – the sector’s prospects looked brighter in the recent months.
Esta historia es de la edición March 2018 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 2018 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
The Future Of Credit Card Usage
Credit card usage is increasing in India, but it's prudent to manage credit wisely
Liquidity Coverage Ratio Framework
At the recent monetary policy committee meeting in April 2024, Reserve Bank of India (RBI) Governor Shaktikanta Das proposed changes in the liquidity coverage ratio (LCR) framework to successfully meet liquidity risk.
STRATEGIES TO HELP YOU STAY ABROAD AFTER STUDIES
More Indians are now going abroad for higher studies with plans to stay and work. But living costs, the lack of job opportunities and the burden of education loans could often pose a problem. Assess the opportunities and be practical before making such a decision
FROM SAVINGS TO SECURITY: HOW INDIANS ARE PREPARING FOR THEIR SUNSET YEARS
The Outlook Money - Toluna Retirement Survey conducted in December-end 2023 threw light on how Indians plan and save for retirement. A growing number of Indians now understand the necessity of retirement planning, and want to enjoy their retirement years with kith and kin
Here's How To Install A Solar Panel
It is the season of solar panel subsidy announcements. Right after the Centre launched the PM Surya Ghar Muft Bijli Yojana to offer subsidies to 10 million households to set up rooftop solar systems, the Delhi government has announced an extra capital subsidy of ₹2,000 per kilowatt (kW) to Delhi residents for rooftop solar panel installation. Both governments have caps on subsidies. Some other states, too, offer incentives on the use of solar rooftop panels.
Master Your Own Money Choices
Instead of judging others, have clarity about what you want from your money, where you want to spend it and how you want to feel about it
3 THINGS TO CHECK BEFORE YOU EXIT YOUR POLICY
If you think that the insurance policy you bought doesn't quite align with your goals, you may surrender it. But that comes at a cost. Here's why you should do the calculations
Small And Mid Cap Rally: Be Wary
You may include small- and mid-caps in your portfolio for diversification, but understand that they may not replicate last year's returns and are relatively more volatile
HOW TO MAKE SENSE OF THE GOLD RUSH?
The precious metal has been on an upward rally for the last couple of years due to factors as diverse as geopolitical conflicts, bulk buying by central banks, and hope of rate cuts, of late. The key, therefore, is to invest in gold in a staggered manner
'People Are Normal. They Are Sometimes Ignorant But They Are Not Stupid'
Meir Statman, the Glenn Klimek Professor of Finance, Leavey School of Business, Santa Clara University, California, is the second generation of behavioural finance experts who refused to label people as \"irrational\" and instead called them \"normal\". In his latest book, A Wealth of Well-Being: A Holistic Approach to Behavioral Finance, he expands the circle of finance to include life well-being and shows how they are inextricably intertwined. As part of an interview series, 'Wealth Wizards: Money Maestros in conversation with Nidhi Sinha, Editor, Outlook Money', Statman spoke about his research, and explained concepts through anecdotes that can help you take balanced decisions. Edited excerpts: