Post-Covid surge in MF AUM share reflects structural change in financial intermediation: Uday Kotak
mutual fund
share—mainly in equities—has doubled to 31% of bank deposits, reflecting a structural change in
financial intermediation
, said
Uday Kotak
, Founder & Director of
Kotak Mahindra Bank
, on a social media platform.
He also noted that India's savers have become investors, signalling a shift in how people manage their money. The traditional image of Indian households parking most of their wealth in
fixed deposits
is steadily evolving.
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Uday Kotak posted on social media platform X, 'India's saver turns investor. Post-Covid, mutual fund AUM share—mainly equity—has doubled to 31% of bank deposits. Reflects structural change in financial intermediation. It grows domestic risk capital and creates an equity culture. But let's be alert about excessive exuberance.'
India's saver turns investor. Post Covid, mutual fund AUM share, mainly equity,has doubled to 31% of bank deposits. Reflects structural change in financial intermediation. It grows domestic risk capital and creates an equity culture. But let's be alert about excessive exuberance.
pic.twitter.com/KajiUX4f5B
— Uday Kotak (@udaykotak)
June 20, 2025
He posted an image stating that mutual fund assets are now nearly a third of bank deposits, accompanied by data from FY15 to FY25, including the latest available reading for May. In FY15, mutual fund AUM as a proportion of bank deposits stood at 13%, which has risen to 29% in FY25.
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The data showed temporary declines in FY20 and FY23. In FY20, the ratio dropped to 16% from 20% in FY19, while in FY23, it dipped to 22% from 23% in FY22. The most recent data point from May 2025 shows the ratio at 31%.
According to Uday Kotak, this surge contributes to the growth of domestic risk capital and fosters an equity investment culture.
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This trend helps build domestic risk capital, reduces dependence on foreign money, and strengthens the long-term depth and resilience of our capital markets. Yet, one must remain mindful of excessive exuberance.
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