Divya Delhi: According to senior banker Uday Kotak, mutual fund assets under management (AUM) have increased to over a third of bank deposits, changing household savings preferences in India. Kotak reported on social media that mutual fund AUM, led by equity investments, rose to 31% of bank deposits in May 2025 from 13% in FY15. He claimed it shows financial intermediation structural shift. It boosts domestic risk capital and equity culture. Beware overexuberance. Savings turn into investments in India. Mutual fund AUM, mostly equity, rose to 31% of bank deposits after Covid. Reflects financial intermediation restructuring. Boosts domestic risk capital and equity culture. In the X article, Kotak warned against excessive excitement. Mutual fund assets have grown over the past decade, especially following COVID-19. The AUM-to-deposit ratio increased from 21% in FY21 to 26% in FY24 and 31% by May 2025. This indicates expanding investor participation in capital markets, supported by internet access, awareness initiatives, and equity appetite. Kotak said this tendency "grows domestic risk capital and creates an equity culture" that benefits the economy. Investors and governments should avoid "excessive exuberance," he said.Mutual funds, especially SIPs, have helped channel long-term consumer savings into the markets. Industry experts say this transition could lower India's foreign capital dependence and boost local financial resiliency.