This week, Monika dives into a quiet but massive shift in India’s financial landscape: mutual funds are set to overtake life insurance in total assets under management by FY26, with both industries nearing ₹80 trillion. For years, life insurance dominated household savings, but mutual funds—once less than half its size—have now caught up. SIPs have gone mainstream, while trust in life insurance remains dented due to frequent mis-selling.

She explains how regulation has played a decisive role. Capital market rules have consistently put investors first, reshaping the mutual fund industry. From eliminating upfront commissions and curbing hidden costs to enforcing better disclosures, SEBI’s reforms have built investor trust and fuelled rapid growth. In contrast, life insurance struggles with poor disclosures, high exit costs, and low persistency—less than half of policies survive five years. Mutual funds show how investor-first regulation can transform an industry and help build long-term financial health.

In listener questions, Lokesh asks if a professional advisor is necessary to manage his investments as he grows older. Soumajit seeks guidance on managing his father’s ₹60 lakh retirement corpus to balance income and safety. And Vamsi, planning to buy life insurance, wants to know what happens if an insurer fails and whether a five-year premium payment plan is better than paying annually.

Chapters:

(00:00 – 00:00) The Rise of Mutual Funds in India

(00:00 – 00:00) Life Insurance Falls Behind: What It Means for Investors

(00:00 – 00:00) Should You Hire a Professional to Manage Your Investments?

(00:00 – 00:00) How to Invest a Retirement Corpus for Safety and Growth

(00:00 – 00:00) Choosing the Right Life Insurance and Understanding Your Options

https://www.indiapost.gov.in/Financial/Pages/Content/Post-Office-Saving-Schemes.aspx

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠ 

Monika’s book on basic money management

⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠

Monika’s book on mutual funds

⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠

Monika’s workbook on recording your financial life

⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠

Calculators

⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠@MonikaHalan⁠⁠

Instagram ⁠⁠@MonikaHalan⁠⁠

Facebook ⁠⁠@MonikaHalan⁠⁠

LinkedIn ⁠@MonikaHalan⁠

Production House: ⁠www.inoutcreatives.com⁠

Production Assistant:⁠ Anshika Gogoi⁠