Latest news with #Kotak
Mint
9 hours ago
- Business
- Mint
Be alert about...: Uday Kotak hails Indian savers' transformation into investors but cautions against THIS
Indian stock market: Billionaire banker Uday Kotak, the founder and director of Kotak Mahindra Bank, highlighted a key transformation underway in India's financial landscape: investors preferring equity markets over bank FDs. However, he also shared a word of caution amid the growing equity culture. Kotak, in a recent post on social media platform X, wrote, 'India's saver turns investor. Post Covid, mutual fund AUM share, mainly equity, has doubled to 31% of bank deposits.' This succinct statement encapsulates a significant shift in the mindset of Indian households — from parking money in traditional bank deposits to actively investing in capital markets, particularly through mutual funds. Before the COVID-19 pandemic, Indian households predominantly preferred safe instruments like fixed deposits for saving money. Equity investments were often seen as risky and suitable only for a small section of financially literate or affluent individuals. However, the post-pandemic era has marked a change in this conservative approach. The share of mutual fund assets under management (AUM), largely driven by equity funds, has now grown to 31% of total bank deposits — a stark contrast to pre-COVID levels, where the share was significantly lower. According to the data shared by Kotak, the mutual fund AUM as a proportion of bank deposits was 13% in FY15, which increased to 21% in FY21, and now stands at 31% as of May 2025. The latest data from Association of Mutual Funds in India (AMFI) showed that the total AUM of mutual funds stood at ₹ 71.93 lakh crore in May, registering a 3% growth from ₹ 69.73 lakh crore in April. The pandemic prompted many individuals to reassess their financial planning, creating a stronger awareness of the importance of long-term wealth creation. With fixed deposit returns remaining relatively low and inflation impacting real returns, more people began exploring mutual funds for better yields. The rise of user-friendly investment platforms also made mutual fund investing more accessible to the masses, especially young investors. Another major contributor to this shift has been the widespread adoption of Systematic Investment Plans (SIPs). AMFI data showed that the monthly inflow into mutual funds through the SIP route rose by 0.21% to a fresh high of ₹ 26,688 crore in May. Additionally, the number of contributing SIP accounts in May rose to 8.56 crore against 8.38 crore in the previous month. The Indian stock market has witnessed a remarkable rally since the lows of the COVID-19 pandemic. Over the past five years, the benchmark Sensex has surged by 137%, while the Nifty 50 has advanced 145%. Broader markets have significantly outperformed the frontline indices during this period. The Nifty Smallcap 100 and Nifty Midcap 100 indices have each delivered nearly 300% returns over the last five years, underscoring the growing participation and interest in mid- and small-cap segments. While celebrating the shift from saving to investing and the impressive returns across market segments, Uday Kotak offers a timely caution: 'But let's be alert about excessive exuberance.' This serves as a prudent reminder that rapid market gains can often lead to over-optimism and speculative behavior. As valuations soar and investor participation widens, there is a risk of complacency or irrational expectations setting in. Kotak's message underscores the importance of maintaining financial discipline, focusing on fundamentals, and being mindful of potential market corrections — especially in an environment where sentiment can shift swiftly. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
News18
10 hours ago
- Business
- News18
'India's Savers Turn Investors': Uday Kotak Says Mutual Fund Assets Surge To 31% Of Bank Deposits
Kotak says the trend is beneficial for the economy as it "grows domestic risk capital and creates an equity culture", but he cautioned investors against "excessive exuberance". India is witnessing a shift in household savings preferences as mutual fund assets under management (AUM) have surged to nearly a third of the total bank deposits, according to the latest data shared by veteran banker Uday Kotak. In a post on social media platform X, Kotak said mutual fund AUM, driven largely by equity investments, has climbed to 31% of bank deposits as of May 2025, up from just 13% in FY15. He said it reflects structural change in financial intermediation. It also 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," Kotak said in the post on 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. — Uday Kotak (@udaykotak) June 20, 2025 Over the past decade, mutual fund assets have steadily gained ground, especially after the COVID-19 pandemic. From FY21 onwards, the AUM-to-deposit ratio began accelerating, rising from 21% in FY21 to 26% in FY24 and reaching 31% by May 2025. This is seen as a sign of growing investor participation in capital markets, supported by digital access, awareness campaigns, and a rising appetite for equity. However, he also cautioned investors and policymakers to remain vigilant against 'excessive exuberance." The rise of mutual funds, particularly systematic investment plans (SIPs), has been instrumental in channelling long-term household savings into the markets. Industry experts say this evolution could reduce India's reliance on foreign capital while strengthening financial resilience domestically. The monthly inflow into mutual funds through the Systematic Investment Plan (SIP) route hit a fresh high of Rs 26,688 crore in May, according to the latest data from AMFI released on June 10. However, the net equity inflow fell 22 per cent month-on-month in May to Rs 19,013 crore from Rs 24,269 crore in April 2025. The number of contributing SIP accounts in May rose to 8.56 crore against 8.38 crore in the previous month. The monthly SIP inflows for April were at Rs 26,632 crore. The total SIP assets under management (AUM) rose to Rs 14.61 lakh crore against Rs 13.90 lakh crore in April.
Time of India
11 hours ago
- Business
- Time of India
India's saver turns investor: Uday Kotak spots a big shift in India's money habits
Veteran banker Uday Kotak on Friday said that India is witnessing a structural shift in its financial landscape, with savers increasingly turning into equity investors . In a post on X (formerly Twitter), 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. 'India's saver turns investor. Post-Covid, mutual fund AUM share, mainly equity, has doubled to 31% of bank deposits,' said Kotak, founder and director of Kotak Mahindra Bank . He added that the trend reflects a 'structural change in financial intermediation,' strengthening the domestic risk capital base and nurturing an equity culture in the country. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo — udaykotak (@udaykotak) However, Kotak also sounded a note of caution: 'Let's be alert about excessive exuberance,' he warned, implying that investors and regulators must guard against overheating in the equity markets. Live Events The shift comes amid a sustained rise in retail participation in stock markets.
India Today
21 hours ago
- Business
- India Today
iPhone 16 price drops by Rs 8,410
iPhone 16 price drops by Rs 8,410 By Ankita Garg The iPhone 16 is selling on Vijay Sales at the lowest price yet. The device's price has dropped on the platform by Rs 8,410, which is without any terms or conditions. Here are the details. Vijay Sales is currently selling the new iPhone 16 model at a discounted price of Rs 71,490 (white, green, black and blue colours). This is down from its original launch price of Rs 79,900. This means that you are getting a flat discount of Rs 8,410. There is also Rs 4,000 discount on the ICICI, Kotak, and axis bank cards, which will effectively reduce the price to Rs 67,490. This is a great iPhone 16 deal and will likely expire soon. Hence, people looking to buy this device shouldn't take longer to get one. The iPhone 16 comes equipped with Apple Intelligence features, integrating AI-based capabilities for a smoother user experience. Powered by the latest A18 chip with a 5-core GPU, it delivers better speed and performance. The device features a 6.1-inch Super Retina XDR OLED display for vivid colors and high contrast. The rear camera system includes a 48MP Main and 12MP Ultra-Wide rear camera. The 12MP front camera supports high-quality selfies and FaceTime calls. The iPhone 16 is IP68-rated, offering splash, water, and dust resistance for added durability.
Time of India
a day ago
- Business
- Time of India
Tilaknagar plans to raise $500 million to fund Imperial Blue acquisition
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Tilaknagar Industries , the maker of Mansion House and Courrier Napoleon brandies, is looking to raise up to $500 million to fund the potential acquisition of whisky brand Imperial Blue from French spirits giant Pernod Ricard , people familiar with the matter told Mumbai-based distiller has mandated Kotak Mahindra Bank and Avendus Capital to arrange the financing, which is expected to be structured as rupee-denominated non-convertible debentures (NCDs), the people said, requesting anonymity as the information is debt is likely to be priced in the low-to-mid teens, given the size of the transaction and Tilak Nagar's credit profile, they added. In January 2024, Crisil upgraded the company to A-/stable, leading to interest rate reduction on a Kotak loan from 13% to 9.95%, effective mid Q1 FY25, according to the company's investor is looking to fund a major part of the bid through debt and the remaining via equity, one source said."Avendus and Kotak have been reaching out to investors to raise around $500 million, where the deal will be a mix of fundraise from mutual funds and non-banking finance companies through non-convertible debentures and loans from foreign banks," said one of the sources. "Around $100 of this could be raised through private credit funds."Spokespersons at Tilaknagar, Kotak and Avendus did not respond to requests for comment. ET had on June 4 reported that Tilaknagar is leading the acquisition race for Imperial Blue, marking India's biggest alcobev M&A in nearly a debt was restructured with Edelweiss ARC in 2020. Since then, the company's financials have improved.
