The paper discusses some of the questions arising in a life office from a policy of equity investment. An interpretation of the expected yield of such a portfolio is given with its implications for diversification. It is suggested that the chief criterion for the selection of individual stocks should be the quality of management. A description of this and certain other aids to selection is given together with a note on the effects of gearing.

The question of price level is referred to in its relationship with requirements of growth and income distribution, and a policy to be adopted in phasing purchases of such stocks is proposed. Certain of the effects of these methods on portfolio maintenance are mentioned, and there is a brief discussion of reserve requirements for an immunised fund.