Life insurance major LIC today said it is keen on buying 40-year bonds which the government is set to issue this year. "This is a very positive move from the government that long duration papers will be issued. Definitely there will be good demand for such papers, especially from life insurers, and I am sure that LIC will take advantage of this," LIC Chairman S K Roy told reporters here at a financial inclusion summit organised by the Economic Times. Earlier this week, the Finance Ministry had said it would be issuing 40-year bonds next fiscal, making it the longest tenor bond sale from the government so far. Roy said since life insurers have long-term liabilities in the form of policy contracts, such bonds would be a good bet. "This (announcement of long-term papers) will encourage us to go in for the G-secs market. But that does not mean that we will not be investing in corporate bonds or equity. It is all about taking advantage of opportunities available," he said. Talking about investment in the equity and bond market in this fiscal, Roy said the Corporation has surpassed the last year's figure. "Even the profits that we have made from the equity transactions are more than last year," he said. As per media reports, till the December quarter, LIC has netted around Rs 22,000 crore in profits from equities, up from around Rs 21,200 crore during the same time last year. He said investment target for the next financial year is yet to be decided. However, the Corporation had pegged Rs 55,000-crore investment for the equities space this fiscal. When asked about whether LIC would increase its stake in public sector banks, he said investment in state-run banks is governed by the threshold specified by IRDA and it would not be breached. He also said LIC has applied for Ulip products and is likely to launch them next year.