This blog will walk you through the financial sector in India, segments that comprise the finance sector, top financial companies, and historical sector performance.
The financial sector in India comprises diverse entities & services, including commercial banks, insurance companies, non-banking financial companies (NBFCs), co-operatives, pension funds, etc.
In the past few years, the reach of technology and accessibility of financial services has increased rapidly. As a result, investors are now more aware of financial assets & services.
This has led to more investments in equity markets and securities; thus strengthening the Indian financial sector. In this blog, we walk you through some key facts and data of the financial sector.
Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.
The financial sector in India predominantly comprises banking and insurance. For the past 5 years, CDSL, Bajaj Finance and L&T Finance Holdings have been the industry leaders in terms of sales and profit growth.
Financial services are also an important part of the sector. They include capital market services like broking, asset management, wealth management, etc. Top financial services offered in India are:
2. Professional Advisory
3. Wealth Management
4. Mutual Funds
6. Stock Market
7. Treasury/Debt Instruments
8. Tax/Audit Consulting
Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of India’s most popular financial sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.
During the last 5 years, the AUM of the mutual fund industry in India has grown at a CAGR of 15.5%, and the equity AUM has grown at a CAGR of 17.3%.
The sector consists of many subsegments, which may not see growth at the same rate and time. Hence, it is important to look at the opportunities and risks of specific segments/companies.
More importantly, it is advisable to consult a Cube Wealth Coach before investing as direct equity may not be everyone’s cup of tea. Investors interested in equity investments can explore options like:
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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!