Latest news with #UdayKotak
Time of India
8 hours ago
- Business
- Time of India
Post-Covid surge in MF AUM share reflects structural change in financial intermediation: Uday Kotak
The post-Covid 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. Also Read | Up 29% in 5 months! Should you invest or avoid gold mutual funds? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo 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. — 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. Live Events 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. Also Read | Deepak Shenoy's Capitalmind Mutual Fund files its first draft document with Sebi for a flexi cap fund 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.
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.
Time of India
06-06-2025
- Business
- Time of India
Uday Kotak hails RBI's MPC decision to cut 50 bps repo rate, 100 bps CRR as ‘bold and strategic'
Veteran banker Uday Kotak has praised the latest monetary policy announcement, calling it a 'bold and strategic' move by the central bank. In a post on X (formerly Twitter), the Kotak Mahindra Bank founder highlighted key elements of the policy, including a 50 basis point rate cut, a 100 basis point reduction in the Cash Reserve Ratio (CRR), and a shift in the policy stance from 'accommodative' to 'neutral'. Describing it as a 'nuanced combination of policy measures,' Kotak might be suggesting that the central bank's approach balances the need for growth with macroeconomic stability. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Highlights of RBI's June 2025 monetary policy Following are the highlights of the Reserve Bank's June monetary policy announced by Governor Sanjay Malhotra on Friday: Benchmark lending rate (repo) reduced by 50 bps to 6.5 pc Monetary policy stance changed from accommodative to neutral Cash Reserve Ratio cut by 100 bps, to infuse Rs 2.5 lakh cr liquidity in banking system Lowers retail inflation projection by 30 bps to 3.7 pc for FY26 Outlook for inflation points towards benign prices across major constituents Retains GDP projection for FY26 at 6.5 pc CAD for FY26 expected to remain well within sustainable level Foreign exchange reserves dip to USD 691.5 bn (May 30) from USD 692.7 bn Next MPC meeting from Aug 4 to 6. With inputs from PTI
