Financial institutions operating in India play a very important role in the financial system. They accumulate the capital from the investors and invest this capital in Indian financial markets. It helps to boost the growth of Indian economy. They facilitate the process of capital accumulation by transferring resources from savers to investors. These institutions are comprised of Life Insurance Corporation of India (LIC), Unit Trust of India (UTI) and General Insurance Corporation of India (GICI), etc. However, LIC have an immense role to mobilize the savings of people into Indian economy. The regular savings of Indian people through life insurance products of LIC has brought significant improvement in the growth of life insurance sector. This has helped to increase the growth and performance of life insurance business which accelerate the growth of economic development in India. Enormous premium collected by LIC are invested through their investment portfolio into various investment sectors in India. In present circumstances, Insurance Regulatory and Development Authority (IRDA) regulates the life insurance investment portfolio taking policyholders’ protection and healthy growth of insurance market with priority of economic development in India. The present paper will focus on the sector wise investments during pre and post-reforms period to analyze year-wise growth analysis as well as significant differences and homogeneous subsets among different sectors using one way ANOVA and Tukey’s HSD Test during the pre and post-reforms era.