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TOKYO, Apr 27 (Reuters) Sony Corp. posted a 68 percent rise in annual operating profit on Thursday, helped by investment gains and strong sales of flat TVs, but it forecast a sharp fall in profit this year.

The electronics and entertainment conglomerate forecast that operating profit would fall 48 percent to 100 billion yen ($871.6 million) in the business year that started on April 1, well below the market consensus of 171.2 billion yen from 19 analysts surveyed by Reuters Estimates.

Sony's group operating profit came to 191.3 billion yen in the business year ended March 31, up from 113.9 billion yen a year earlier. The result handily beat the market consensus of 130.8 billion yen. Sony's own forecast was 100 billion yen.

Sony's earnings have been boosted by valuation gains on investments at its life insurance unit due to a rallying Japanese stock market, robust demand for its recently launched Bravia brand liquid crystal display (LCD) TVs, and a softer yen.

Shares of Sony rose 28 percent during the 2005/06 business year, underperforming Japan's electrical machinery index, which rallied 39 percent.

($1=114.73 yen) REUTERS CS SND1152