'India’s saver turns investor...' - Uday Kotak Flags Shift In Indian Mindset, But Warns Against Market Mania

Uday Kotak, the veteran banker on Friday took to posting on the social media platform X, saying that India is witnessing a structural shift ion its financial landscape, as savers are increasingly turning into equity investors.

Uday Kotak noted that the share of mutual fund assets under management (AUM) primarily in equity schemes has doubled to 31% of bank deposits in the post-Covid period.

What Did Uday Kotak Say?

"India’s saver turns investor. Post-Covid, mutual fund AUM share, mainly equity, has doubled to 31% of bank deposits," said Uday Kotak, the Founder and Director of Kotak Mahindra Bank.

He further added that this trend reflects a "structural change in financial intermediation," strengthening the domestic risk capital base and nurturing an equity culture in the country.

However, Kotak also cautioned his followers, saying, "Let's be alert about excessive exuberance," he warned implying that investors and regulators must guard against overheating in the equity markets.

This shift comes amid a sustained rise in retail participation in stock markets.

What Does AMFI Data Say?

In his post Uday Kotak had also cited data from a Franklin Templeton report, along with Reserve Bank of India (RBI) and Association of Mutual Funds in India (AMFI), to further highlight the trend.

Mutual fund asset under management (AUM) as a proportion of bank deposits stood at 13% in FY15, was steady through FY16, and rose to 16% gradually in FY17.

In FY21, the pace picked up when the share of mutual funds AUM jumped to 21%, followed by 26% in FY24 and 29% in FY25.

According to AMFI data, the net equity mutual fund inflows fell sharply by 21.66% month-on-month to Rs 19,013 crore in May 2025, which is the lowest in a year, despite a rising stock market.

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