From Safe to SIP: Uday Kotak Says ‘Invest Smart’ as MFs Muscle Into the Mainstream

India's financial landscape is experiencing a seismic shift with the assets under management (AUM) of the mutual fund industry rising to 31% of total bank deposits, a stupendous rise from the mere 13% in FY15. The phenomenon, which can be described as most significant by seasoned banker Uday Kotak, reflects the growing appetite of Indian consumers for investment tied to the market over conventional saving instruments.

 

In a recent X (previously Twitter) comment, Kotak wrote, "India's saver turns investor." He emphasized that the trend signifies a structural change in financial intermediation, encouraging domestic risk capital and building an equity culture. Nevertheless, he also issued a warning: "Let's be alert about excessive exuberance."

 

The mutual fund boom is underpinned by robust data:

Experts attribute this shift to increased equity returns, web-based accessibility, and improved financial awareness. Even though this shift strengthens India's domestic capital pool and reduces reliance on foreign portfolio inflows, Kotak's call for moderation emphasizes the need for prudence when investments are bullish.

 

Sources: Business Today, Moneycontrol, News18, MSN, The Telegraph India