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Dear Sathi, I my view you can invest you money @ NLIC & NLICL.....Because they regularly giving bonus share....

Dear Colleagues,

I have never invested in Insurance Companies. I want to diversify my portfolio and want to invest some amount in this sector also. Personally if you ask me, I don't understand how these companies work and I find it very hard to understand their financial reports. I also find that their EPS stands very low and that their P/E ratio is very high and the price of share also very high when I look at their financial reports and I get scared. I did a little research by going into their websites and asked my broker regarding investing in this sector. He told me not to invest in non-life insurance companies and suggested some names of Life Insurance companies where I could invest. I don't know the reason why he said not to invest in the non life insurance companies and I didn't bother to ask him also.

The names of the companies my broker suggested me to invest are:

1. In the low cap range, Surya and Gurans life insurance companies
2. In the mid cap range, Prime and Asian Life
3. In the high cap range, NLIC and NLICF

I don't think I can invest in the high cap range owing to my little budget. Now I am asking my dear friends who have long experiences in the insurance sector, which companies in this sector in the low and mid cap range are the best and why? The companies can be different from what my broker suggested to me. Please provide me with genuine information so that I can invest some money in this sector also!