'The real estate venture capital is a step towards widening our income basket. Currently, we get interest income from the housing company and fee-based income from the financial services outfit. The venture capital fund will provide income from shares,' Nair said.

The real estate fund will invest in companies operating in the field such as developers and construction companies.

LIC is the second largest real estate owner in the country after the Indian Railways.

According to officials, foraying into venture capital segment is not connected with the restrictions faced by LIC under the Insurance Regulatory and Development Authority's (IRDA) investment regulations on investing in unlisted companies.