LIC put Rs 10.7 lakh cr in PSUs, almost same as...

LIC put Rs 10.7 lakh cr in PSUs, almost same as investments in 6 decades to 2014

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New Delhi: The Modi government’s dependence on public sector firms and off-budget borrowings to make up for its revenue shortfalls and dress up its fiscal deficit numbers has been discovered in another set of shocking data.

The Life Insurance Corporation of India (LIC), according to latest data from the RBI, invested Rs 10.7 lakh crore in public sector firms, many of them ailing banks, between fiscal years 2014-15 and 2018-19 — the first term of Prime Minister Narendra Modi’s NDA government.

This investment of Rs 10.7 lakh crore took the cumulative amount LIC has invested in public sector since its inception in September 1956 to Rs 22.6 lakh crore. In contrast, LIC’s cumulative investment in public sector was Rs 11.9 lakh crore at the end of fiscal 2013-14.

In effect, the LIC under the Modi government invested in public sector in five years 90 per cent of the investments LIC had made in them during its entire existence up to 2014.

The Rs 10.7 lakh crore is also a 72 per cent jump from the Rs 6.2 lakh crore LIC invested in public sector in the five years of UPA-2 when Manmohan Singh was prime minister, data from the Reserve Bank of India’s handbook of statistics on the Indian economy shows.

Full news – https://theprint.in/economy/funds-starved-modi-...

37 Comments  |  
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LIC is bound to doom….modi forced LIC to buy stocks post budget to keep market afloat…..in nxt 2 year they will bring the IPO of LIC and thats it….Govt. will rub its hands off the firm…

LIC is a failing ship….leave it ASAP….

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still_guessing wrote:

LIC is bound to doom….modi forced LIC to buy stocks post budget to keep market afloat…..in nxt 2 year they will bring the IPO of LIC and thats it….Govt. will rub its hands off the firm…

LIC is a failing ship….leave it ASAP….

Who you are advising to leave lic?

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…there are multiple stakeholders…offcourse some of them are already regretting it…

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What if LIC turns out to be another ILFS? grin

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I am the victim on LIC sad
Lost more than 50K

I made LIC policy of 1.5 Lakh per year in the recommendation of Parents but I regret now.
I have to surrender them and bear losses.. SH*T company

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charmi2008 wrote:

I am the victim on LIC sad
Lost more than 50K

I made LIC policy of 1.5 Lakh per year in the recommendation of Parents but I regret now.
I have to surrender them and bear losses.. SH*T company

…u r nt alone….there are many still who believe that LIC is safe…..its a very big scandal….It all started in 2015…

…The modus operandi is artificially inflate the share price of PSU by LIc’s fund….then sell the 5% 0r 10% disinvestment target to LIC itself…and use that money to bridge the Fiscal deficit target…

..twin loss….LIC money is used to buy useless shares….then more money is used to buy 5-10% stake in ailing companies at inflated prices….

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Oh the comments. Just wow. Don’t even know L in LIC. Do you even know how much profits LIC has generated in last 30 years by investing in pvt companies and some PSUs too. In stocks like INFY where they held 5.3 their return to date is 16300%. smile There are numerous investments where they minting hell lot of money. This 10.7L Cr is a peanut and what make people think that they will lose every penny out of it? Similar with Bharti Airtel where they minted 2800% for their stake. Go and search for details.

Those who can’t clean their dishes are talking like experts on LIC investments.

The person who is saying he lost money in LIC. He may not have info about his insurance policy. If you take ULIPs you adhere to invest in equities and we all know equities are volatile and greater risks are involved. I too have some ULIPs from LIC taken 20 years back and today returns on those policies stand at 265-350%, Investments are long term prospects, it is not trading. Safe or no safe, money matters should concern individuals. You should have knowledge yourself where you put money and how to get return. Even I invest and trade also in markets but blame myself for decisions not the fund managers. If you cant analyze yourself then don’t start blame game. LIC or any other insurance company never provide a guarantee of returns except some insurance plans where they are bound to meet the words.

Even in 2005 newspapers were filled with LIC sinking and they made another round of investments after that and keep doing it as this is what they ca do to grow money.

10-20% markets down ho naa sabko lagta hai doob gaya sab kuch. Pralay aana wala hai. Yeh cycle hai isme up down hamesha rahega par ship will keep sailing. Today things may seem difficult but a better tomorrow is always there. If it wasn’t we wouldn’t have come along this far. During 2008-2009, many said there will be no recovery. Returns will not be better. But see in 10 years returns are manifolds and those who failed to gain something out of it are cry babies.

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chingumboy wrote:

Oh the comments. Just wow. Don’t even know L in LIC. Do you even know how much profits LIC has generated in last 30 years by investing in pvt companies and some PSUs too. In stocks like INFY where they held 5.3 their return to date is 16300%. smile There are numerous investments where they minting hell lot of money. This 10.7L Cr is a peanut and what make people think that they will lose every penny out of it? Similar with Bharti Airtel where they minted 2800% for their stake. Go and search for details.

Those who can’t clean their dishes are talking like experts on LIC investments.

The person who is saying he lost money in LIC. He may not have info about his insurance policy. If you take ULIPs you adhere to invest in equities and we all know equities are volatile and greater risks are involved. I too have some ULIPs from LIC taken 20 years back and today returns on those policies stand at 265-350%, Investments are long term prospects, it is not trading. Safe or no safe, money matters should concern individuals. You should have knowledge yourself where you put money and how to get return. Even I invest and trade also in markets but blame myself for decisions not the fund managers. If you cant analyze yourself then don’t start blame game. LIC or any other insurance company never provide a guarantee of returns except some insurance plans where they are bound to meet the words.

Even in 2005 newspapers were filled with LIC sinking and they made another round of investments after that and keep doing it as this is what they ca do to grow money.

10-20% markets down ho naa sabko lagta hai doob gaya sab kuch. Pralay aana wala hai. Yeh cycle hai isme up down hamesha rahega par ship will keep sailing. Today things may seem difficult but a better tomorrow is always there. If it wasn’t we wouldn’t have come along this far. During 2008-2009, many said there will be no recovery. Returns will not be better. But see in 10 years returns are manifolds and those who failed to gain something out of it are cry babies.

You always comment in favor of the current government and you see nothing wrong with the economy smile

I think you’re a hardcore Modi fan confused

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chingumboy wrote:

Oh the comments. Just wow. Don’t even know L in LIC. Do you even know how much profits LIC has generated in last 30 years by investing in pvt companies and some PSUs too. In stocks like INFY where they held 5.3 their return to date is 16300%. smile There are numerous investments where they minting hell lot of money. This 10.7L Cr is a peanut and what make people think that they will lose every penny out of it? Similar with Bharti Airtel where they minted 2800% for their stake. Go and search for details.

Those who can’t clean their dishes are talking like experts on LIC investments.

The person who is saying he lost money in LIC. He may not have info about his insurance policy. If you take ULIPs you adhere to invest in equities and we all know equities are volatile and greater risks are involved. I too have some ULIPs from LIC taken 20 years back and today returns on those policies stand at 265-350%, Investments are long term prospects, it is not trading. Safe or no safe, money matters should concern individuals. You should have knowledge yourself where you put money and how to get return. Even I invest and trade also in markets but blame myself for decisions not the fund managers. If you cant analyze yourself then don’t start blame game. LIC or any other insurance company never provide a guarantee of returns except some insurance plans where they are bound to meet the words.

Even in 2005 newspapers were filled with LIC sinking and they made another round of investments after that and keep doing it as this is what they ca do to grow money.

10-20% markets down ho naa sabko lagta hai doob gaya sab kuch. Pralay aana wala hai. Yeh cycle hai isme up down hamesha rahega par ship will keep sailing. Today things may seem difficult but a better tomorrow is always there. If it wasn’t we wouldn’t have come along this far. During 2008-2009, many said there will be no recovery. Returns will not be better. But see in 10 years returns are manifolds and those who failed to gain something out of it are cry babies.

Nobody’s worried with 10-20% down market, but with the current mindset of government. Yes LIC made huge profits, but who here questioned their profitability? Govt keeps on bailing sinking PSU’s thru LIC, at a time when they should be looking for disinvestment. It is very clear that most of PSU’s are cash burning machines, while the govt just keeps on infusing the money. Do u seriously think money infusion will improve their future. If still wanna keep the psu’s, they can simply move to better ways like mgt rejig, etc. (because if capital infusion was a solution, we would have already solved the prob)
LIC is not a solution, and obviously it is very clear No Company is big enough to fail.

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chingumboy wrote:

Oh the comments. Just wow. Don’t even know L in LIC. Do you even know how much profits LIC has generated in last 30 years by investing in pvt companies and some PSUs too. In stocks like INFY where they held 5.3 their return to date is 16300%. smile There are numerous investments where they minting hell lot of money. This 10.7L Cr is a peanut and what make people think that they will lose every penny out of it? Similar with Bharti Airtel where they minted 2800% for their stake. Go and search for details.

Those who can’t clean their dishes are talking like experts on LIC investments.

The person who is saying he lost money in LIC. He may not have info about his insurance policy. If you take ULIPs you adhere to invest in equities and we all know equities are volatile and greater risks are involved. I too have some ULIPs from LIC taken 20 years back and today returns on those policies stand at 265-350%, Investments are long term prospects, it is not trading. Safe or no safe, money matters should concern individuals. You should have knowledge yourself where you put money and how to get return. Even I invest and trade also in markets but blame myself for decisions not the fund managers. If you cant analyze yourself then don’t start blame game. LIC or any other insurance company never provide a guarantee of returns except some insurance plans where they are bound to meet the words.

Even in 2005 newspapers were filled with LIC sinking and they made another round of investments after that and keep doing it as this is what they ca do to grow money.

10-20% markets down ho naa sabko lagta hai doob gaya sab kuch. Pralay aana wala hai. Yeh cycle hai isme up down hamesha rahega par ship will keep sailing. Today things may seem difficult but a better tomorrow is always there. If it wasn’t we wouldn’t have come along this far. During 2008-2009, many said there will be no recovery. Returns will not be better. But see in 10 years returns are manifolds and those who failed to gain something out of it are cry babies.

…ur lingo suggests ur haughtiness….

…as a fellow dimer we respect ur opinion but yes here many know LIC and L of lic….

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…problems with LIC or rather of our economy…

….Total net worth of LIC stands at 31 lakh crores….so 10.7 lakh crores is not peanut for them its almost 33% of their value…

….Look at the chart of contribution of LIC in India’s 5 year plan…its 14 lakh crores in 2012-2017…but estimates for 2017-2022 shows its going to be 7 lakh crores only….so in short LIC is not going to support our economy….Reason we all know why smile

….Govt’s policy of giving step child treatment to PSU will erode more of PSU stocks and LIC’s net worth will fall to 19 lakh crores by these estimates…

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still_guessing wrote:

…ur lingo suggests ur haughtiness….

…as a fellow dimer we respect ur opinion but yes here many know LIC and L of lic….

Read this again and again and explain leave it you used. My comment was not for you or neither I mentioned anyone. But you gets offended by reading my comment. This is what negative people are all about. One news and you just declare the end of LIC.

…LIC is bound to doom….modi forced LIC to buy stocks post budget to keep market afloat…..in nxt 2 year they will bring the IPO of LIC and thats it….Govt. will rub its hands off the firm…

…LIC is a failing ship….leave it ASAP….

I am not here to show off either myself or knowledge. My mind and words just don’t give a shit to negativity. If a company sinks another one rises. People have shifted jobs over thousand of years. One thing is closed, other opens up.

And yes I don’t give a shit to Modi or his fans but those who ask me, they really do care about him. For person like me he is nothing more than just a servant, In coming years we will get a new servant.

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Original wrote:

You always comment in favor of the current government and you see nothing wrong with the economy smile

I think you’re a hardcore Modi fan confused

Nah. I really don’t care who runs the Govt and thousand of times I made it very clear that personalities don’t bug me. They always change. Anyways I criticized them numerous times which people who dislike me just ignore but these days if you are not against someone then by default some people thinks you are in favor of that. smile

He matters to you for criticism. For me he or his name is a piece of crap. But the thing is I can’t myself throw him out of power and throwing him out of power wont solve India’s problems which were ballooning in past and busting now. stuck_out_tongue

Even in a family when decisions are made, some people like it and other tells it will collapse the family if taken but over time things happens and families lives on. Same way world countries are going through tough times and we can’t grow like hell without other’s growing. If there is slowdown in world we can’t say it wont affect us at all. You know about India because you live here. If you research outside no country is blooming and some are even on verge of collapse but India is having more strength than any other which keeps me positive all the time. Every economy faces bad time and why we just dont want to see India consolidating. We are not going back to 1991 where we had to live in fear of losing the whole. That was much more difficult when Dr. Manmohan Singh’s steps paid off over time but when those steps were taken 60% were unsure of it working but they go ahead and we came out of it. Things are not out of control here.

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chingumboy wrote:

Read this again and again and explain leave it you used. My comment was not for you or neither I mentioned anyone. But you gets offended by reading my comment. This is what negative people are all about. One news and you just declare the end of LIC.

…LIC is bound to doom….modi forced LIC to buy stocks post budget to keep market afloat…..in nxt 2 year they will bring the IPO of LIC and thats it….Govt. will rub its hands off the firm…


…LIC is a failing ship….leave it ASAP….


I am not here to show off either myself or knowledge. My mind and words just don’t give a shit to negativity. If a company sinks another one rises. People have shifted jobs over thousand of years. One thing is closed, other opens up.


And yes I don’t give a shit to Modi or his fans but those who ask me, they really do care about him. For person like me he is nothing more than just a servant, In coming years we will get a new servant.

Peace n hugs bro… jus difference of opinion..

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still_guessing wrote:

…u r nt alone….there are many still who believe that LIC is safe…..its a very big scandal….It all started in 2015…

…The modus operandi is artificially inflate the share price of PSU by LIc’s fund….then sell the 5% 0r 10% disinvestment target to LIC itself…and use that money to bridge the Fiscal deficit target…

..twin loss….LIC money is used to buy useless shares….then more money is used to buy 5-10% stake in ailing companies at inflated prices….

what about IDBI as LIC too is involved there rolleyes

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desiman wrote:

what about IDBI as LIC too is involved there rolleyes

https://www.newsclick.in/LIC-Equity-Portfolio-Erodes-57%2C000-Crore-Current-Quarter-Gross-NPA-Spurt

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Awake wrote:

What if LIC turns out to be another ILFS? grin

or another UTI

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That’s incredible. Nobody I know ever lost money in LIC.

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Some Facts and Figures:

LIC’s current quarter stake-holding value in ITC shrunk by Rs 6,520 crore since June end. Similarly, the insurer’s holdings in State Bank of India declined by Rs 6,034 crore and by Rs 4,253 crore in L&T, during the same period.

In addition to this, LIC’s non-performing assets (NPAs) have more than doubled during the period, while the government collected about Rs 2 lakh crore by selling off public sector enterprises in the name of disinvestment, during this period. LIC’s gross NPAs grew to Rs 25,241 crore in 2017-18 from Rs 12,213 crore in 2014-15.

LIC has been a cash-rich public entity with an annual investible surplus of Rs 3-3.5 lakh crore. The Narendra Modi government asked the LIC to give soft loans to the Railways, National Highways Authority of India among others. It had to subscribe the power sector’s Ujwal Discom Assurance Yojana (UDAY) bonds and had made investment in the National Investment and Infrastructure Fund (NIIF).

  • In 2014, LIC bailed out the Modi government by buying another 5.94% stake in Bharat Heavy Electricals Ltd (BHEL) for Rs 2,685 crore, increasing its stake in BHEL to 14.99%.
  • In 2015, the insurer was made to rescue the government in the disinvestment of Coal India by buying shares worth Rs 7,000 crore, picking up one-third of the public offer, so that the government could meet its Rs 22,557-crore target.
  • In 2015, LIC bought nearly 86% of the shares on offer of the Indian Oil Corporation to help its disinvestment sail through, paying over Rs 8,000 crore.
  • In 2017, LIC bought shares worth around Rs 8,000 crore in the disinvestment of General Insurance Corporation of India and again bought shares worth Rs 6,500 crore in the IPO of New India Assurance Company.
  • In March 2018, it again bailed out the Modi government by subscribing to 70% of shares on offer in the IPO of Hindustan Aeronautics Limited, paying Rs 2,900 crore.

However, in June 2018, the Modi government did something unprecedented. It made LIC buy an entire bank — that too the most debt-ridden one in the public sector with 28% bad loans — the sinking IDBI bank at a cost of nearly Rs 13,000 crore.

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deb3l wrote:

Some Facts and Figures:

LIC’s current quarter stake-holding value in ITC shrunk by Rs 6,520 crore since June end. Similarly, the insurer’s holdings in State Bank of India declined by Rs 6,034 crore and by Rs 4,253 crore in L&T, during the same period.

In addition to this, LIC’s non-performing assets (NPAs) have more than doubled during the period, while the government collected about Rs 2 lakh crore by selling off public sector enterprises in the name of disinvestment, during this period. LIC’s gross NPAs grew to Rs 25,241 crore in 2017-18 from Rs 12,213 crore in 2014-15.

LIC has been a cash-rich public entity with an annual investible surplus of Rs 3-3.5 lakh crore. The Narendra Modi government asked the LIC to give soft loans to the Railways, National Highways Authority of India among others. It had to subscribe the power sector’s Ujwal Discom Assurance Yojana (UDAY) bonds and had made investment in the National Investment and Infrastructure Fund (NIIF).

  • In 2014, LIC bailed out the Modi government by buying another 5.94% stake in Bharat Heavy Electricals Ltd (BHEL) for Rs 2,685 crore, increasing its stake in BHEL to 14.99%.
  • In 2015, the insurer was made to rescue the government in the disinvestment of Coal India by buying shares worth Rs 7,000 crore, picking up one-third of the public offer, so that the government could meet its Rs 22,557-crore target.
  • In 2015, LIC bought nearly 86% of the shares on offer of the Indian Oil Corporation to help its disinvestment sail through, paying over Rs 8,000 crore.
  • In 2017, LIC bought shares worth around Rs 8,000 crore in the disinvestment of General Insurance Corporation of India and again bought shares worth Rs 6,500 crore in the IPO of New India Assurance Company.
  • In March 2018, it again bailed out the Modi government by subscribing to 70% of shares on offer in the IPO of Hindustan Aeronautics Limited, paying Rs 2,900 crore.

However, in June 2018, the Modi government did something unprecedented. It made LIC buy an entire bank — that too the most debt-ridden one in the public sector with 28% bad loans — the sinking IDBI bank at a cost of nearly Rs 13,000 crore.

I have more data to share just like you. Nice you piled up some in your post. Good work done here. smile The 86% was actually 9% of total equity. So LIC held ~11% in IOC. The market conditions when OFS came was not good at all and Govt had little money on hands, thanks to our rulers of previous terms. But lets not blame them as they do what they wanted to.

But the question is if not LIC then who? If Govt sells stake to private investors then all go hoo haa over it that PSUs are being sold in private hands. Employee associations go on strike if Govt starts talking about the world Privatization. The poor or the worst thing is we have so much laws that make people question almost everything and they don’t do it for betterment but to make things more worse.

Every step of Govt to make BSNL privatize was held hostage by employee association who had a golden chance to take lumpsum money and leave. Govt just can’t save PSUs with taxpayers money always. Money has to come from somewhere and Govt finding it easy to make LIC a scapegoat which is against its own but atleast the cry by some people with vested interest and employee association is not much.

It is not that in future these cos will never come back. They have fixed assets that can make it for the investments but the thing is who will buy for premium in future.

Around the globe, Govts are pushing private firms as they know how hard it is to manage with taxpayers money. Why always forget that we are not a small country? With 1.38bn people our problems will always remain big and we will not be able to fulfill aspirations of even 50% people of this country.

The irony is we rarely as people of this country try to make things easier for ourselves by pushing things. I do my bit but when compared to large population it seems like a pinch of sand in a Sahara dessert. confused

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rbswzz3 wrote:

https://www.moneycontrol.com/news/business/econ...

lic remains king of indian market. biggest gainer after rate cut

They are biggest gainers in last 2 days also and Motilal Oswal too. The India Infoline is another one who raked in millions as they were the one 101% sure of Corporate tax cut coming in Sept.

Anyways today NSE server problem hit many.

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chingumboy wrote:

They are biggest gainers in last 2 days also and Motilal Oswal too. The India Infoline is another one who raked in millions as they were the one 101% sure of Corporate tax cut coming in Sept.

Anyways today NSE server problem hit many.

I think even RJ knew of this! He was so confident of the bottom in his interview a week back

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Bro people voted for hindi hindu Hinduism…no one voted for economy..leave it it’s bound to happen…

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Awake wrote:

I think even RJ knew of this! He was so confident of the bottom in his interview a week back

Just because of WB and RJ, I always remain bullish and use downside to up my holdings. That day I had my gut feeling that Nifty will move atleast 125-150 pts on some announcement. But never hoped what happened.

I regret selling my Call Option of 10850 @ 410 bought at 36. Yesterday it more than doubled to 830. Yesterday didn’t trade at all as NSE having problem with ICICIDirect. It’s fine today. Just bought 11800 Call @ 29 with 60 lots. Hoping it to hit around 50 but markets are subdued.

Edit: It 37 now. 13 more needed. sunglasses

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chingumboy wrote:

Just because of WB and RJ, I always remain bullish and use downside to up my holdings. That day I had my gut feeling that Nifty will move atleast 125-150 pts on some announcement. But never hoped what happened.

I regret selling my Call Option of 10850 @ 410 bought at 36. Yesterday it more than doubled to 830. Yesterday didn’t trade at all as NSE having problem with ICICIDirect. It’s fine today. Just bought 11800 Call @ 29 with 60 lots. Hoping it to hit around 50 but markets are subdued.

Edit: It 37 now. 13 more needed. sunglasses

I believe money in markets can only be made if you remain bullish no matter what (unless major fundam change) smile
I am no option trader, but a lot of people have either made huge rounds of money or have gone bankrupt!
Congratulations to you! smile

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Awake wrote:

I believe money in markets can only be made if you remain bullish no matter what (unless major fundam change) smile
I am no option trader, but a lot of people have either made huge rounds of money or have gone bankrupt!
Congratulations to you! smile

Derivatives are generally destructive in nature. I trade in Derivatives with funds generated only from FnO. smile Equity/MFs remains untouched. I trade only when a path to follow is clear and gut feeling has 101% confidence. Rest of time just analyze what may come within a month.

Bankrupt becomes only those who trade blindly. While trading in options you know your losses. I never write call or put option as it can make loss unlimited. Only purchase them. Atleast purchasing gives you right not obligation.

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chingumboy wrote:

Derivatives are generally destructive in nature. I trade in Derivatives with funds generated only from FnO. smile Equity/MFs remains untouched. I trade only when a path to follow is clear and gut feeling has 101% confidence. Rest of time just analyze what may come within a month.

Bankrupt becomes only those who trade blindly. While trading in options you know your losses. I never write call or put option as it can make loss unlimited. Only purchase them. Atleast purchasing gives you right not obligation.

Yes, writing call comes with unlimited losses. How can someone be so bearish. Atleast buying call is more of a safer bet.
But these are not my cup of tea smile

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LIC sells useless insurance policies and innocent people get trapped. They hardly give return of 4-5%

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