Important Points for IC 99 - Asset Management Exam

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  • As per IRDA Investment Regulations, life insurance companies are required to invest not less than 50% of their total investable funds in Government securities and approved investment securities out of which investment in Central Government securities should not be less than 25% of the total investments.
  • The types of Government securities according to RBI notifications are : Securities with Fixed Coupon Rates - Securities with variable coupon rates - Securities with embedded derivatives - Securities for Either Subscription Received or Repayment made in Installments - Zero coupon bonds.
  • Equity Shares are categorised as per stock market analysis as : blue chip shares, growth shares, income shares, cyclical shares and speculative shares
  • Classification of preference shares includes : Cumulative Preference Shares - Non-Cumulative Preference Shares - Convertible preference shares - Non-Convertible preference shares - Perpetual or non-redeemable preference shares - Redeemable preference shares - Participating preference shares - Putable preferred shares
  • Bonds and debentures are fixed income generating debt instruments where an investor loans or invests a certain amount of money to the investee (another entity), which in turn repays interest over period of time (coupon payments) and repayment of loan amount at the maturity of the agreement concerned on bond or debenture.
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Asset Management Exam

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