📊 India’s Savers Are Turning Investors, Says Uday Kotak
Veteran banker Uday Kotak, Founder & Director of Kotak Mahindra Bank, has highlighted a structural shift unfolding in India’s savings landscape. In a recent post on X, he pointed out that mutual fund assets under management (AUM) have doubled, now constituting around 31% of total bank deposits — a stark increase since the COVID era.
🔍 Breaking Down the Numbers
- In FY15, mutual fund AUM was just 13% of bank deposits.
- That figure moved to 21% by FY21, climbed to 26% by FY24, and 29% in FY25, reaching 31% in May 2025
💡 Why This Matters
- Financial Maturation
The shift signals a deeper engagement with financial markets and a move away from a deposit-dominated mindset to one that embraces market risk and reward. - Empowering Capital Markets
The surge in mutual fund participation is building domestic risk capital and nurturing a broad-based equity culture in India’s financial ecosystem. - Behavioral Shift
Traditional instruments like fixed deposits are losing their appeal, with households increasingly showing a willingness to take more risk for higher returns
