Insurance and stock market are two entirely opposite markets. How far it is justified for insurance companies to invest into stock market?ake profit on your advice?
Ans. t sounds very strange that insurance companies who are not supposed to be taking risk directly in stock market invest in stock markets which is a very risky field. But insurance companies have to deploy their funds and give return to their investors or policy holders. The insurance companies invest very little percent (15% in the equity as per Insurance Regulatory and Development Authority norms) in the risky market.