Everything You Need To Know About Financial Sector Stocks In India

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.

What Is The Financial Sector?

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:

1. Banking

2. Professional Advisory

3. Wealth Management

4. Mutual Funds

5. Insurance

6. Stock Market

7. Treasury/Debt Instruments

8. Tax/Audit Consulting

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Top Financial Sector Stocks In India

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.

Past Trajectory Of Investment Returns In The Indian Financial Sector

Performance Of The Top Financial Sector Players In India

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Conclusion

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:

• Large-cap mutual funds
• Mid-cap mutual funds
• Multi-cap mutual funds
• International mutual funds
  

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