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In February 2025, the mutual fund industry's net AUM declined from INR 67.25 Tn to INR 64.53 Tn, despite reporting net inflows of INR 400.6 Bn during the month. The contraction was primarily due to valuation losses in equity-oriented funds, which offset the positive impact of inflows.

During the quarter, the mutual fund industry experienced a notable drop in net inflows, particularly in equity-oriented segments. However, as per AMFI data, the Indian mutual fund industry’s Assets Under Management (AUM) reached INR 68.1 Tn as of November 30, 2024, reflecting a robust 38.8% YoY growth despite market volatility.

During the quarter, the mutual fund industry experienced significant AUM growth owing to increased traction in equity-oriented funds. According to AMFI data, the Indian mutual fund industry's assets under management (AUM) were INR 67.1 Tn as of September 30, 2024, representing a 44.0% YoY/ 9.7% QoQ growth despite market volatility.

The mutual fund industry saw robust AUM growth during the quarter, driven by increasing traction in equity-oriented funds. According to AMFI data, the Indian mutual fund industry's assets under management (AUM) stood at INR 61.2 Tn as of June 30, 2024, a growth of 37.8% YoY/ 14.5% QoQ driven by the equity inflows and improving traction in SIPs.

The NBFC sector in India is on a positive trajectory. Strong earnings performance in Q4FY24 reflected healthy demand for credit and effective management strategies amidst a supportive
economic backdrop.

In March 2024, private insurers sold 13.3 lakh policies, while LIC sold 17.2 lakh schemes. The first-year premium for private insurers grew by 2.3% YoY to Rs 23,913 crore. Meanwhile, LIC's first-year premium increased to Rs 36,300.6 crore, with its market share rising by 510 bps YoY.

In FY24E, the life insurance players saw higher traction in low-margin ULIP segment due to changes in the taxation norms. However, the companies faced challenges to sustain growth in high-ticket non-linked segments.

VNB margins expected to stay under pressure for life insurers; SBI Life (TP Rs 1,970) remains our top pick

Private insurers sold 7.8 lakh policies in February 2024, while LIC sold 17.2 lakh schemes. The first-year premium of private insurers grew by 27.8% YoY to Rs 14,017.2 crore in the same period. While LIC's premium rose YoY to Rs 19,896 crore, its market share jumped by 670 bps YoY.

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The number of policies sold grew 1.2% YoY in December–23 for the merged entity (HDFCLIFE+ Exide Life). For the YTD FY24 period, the number of policies sold grew by 9.0% YoY.

In Q3FY23E, we expect the Gross Written Premium (GWP) to continue to report moderation in the growth rates, led by slower growth in the New Business Premium (NBP). The life insurance companies had reported a decline in non-par segment growth in H1FY24, which will continue in
Q3FY24E as well.