Nippon MF plans simpler schemes for new investors
Leh: Nippon India MF is exploring the launch of simple, easy-to-understand mutual fund products for first-time investors in remote areas.
At the launch of the fund house's Leh branch - the first physical presence for any asset management company in Ladakh - CEO Sundeep Sikka said that though people in the region were earning well, they invested in unregulated informal products due to limited financial literacy.
The move aims to boost mutual fund participation in a region that accounts for just over 0.1% of India's MF assets. It sees growth potential in Ladakh's rising income, expanding govt jobs, and low MF-to-GDP ratio (4% vs India's 20%). The initiative also aims to prevent mis-selling by educating both investors and distributors.
"We have seen many govt employees being hired, and income from tourism will rise. So, whatever is the per capita income here today, I feel this region will grow faster than the rest of the country on the back of a low base," said Sikka.
(The writer was in Leh at the invitation of Nippon India MF)
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