ABSTRACT:

Investment refers to acquisition of assets, conversion of money into claims on money and use of funds for productive and income earning assets. Thus, it means the use of funds for productive purposes for securing some objectives like income, appreciation of capital or capital gains or for further production of goods and services with the objective of securing profits. Further, Investment activity involves the use of funds or savings for further creation of assets or acquisition of existing assets. True to the spirit of nationalization, the Corporation has deployed its funds to the best advantage of LIC policyholders as well as for the community as a whole. National priorities and the obligation of reasonable returns to the policy holders are the main criteria of our investments. A modest attempt is made to analyze and understand LIC of India’s investment in infrastructure and social development activities.  The secondary data are collected for a period of 8  years from 2005-06 to 20012-2013 for the analysis. Compounded Annual Growth rate is used in order to compare the growth rates of two investments and also percentage calculated wherever necessary to draw appropriate inferences.

Key words:  LIC of India, Loans, Advances, Investment, Infrastructure, social development