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Economic Times
4 days ago
- Business
- Economic Times
Leh moves toward greater financial inclusion
The mutual fund industry's assets surpassed Rs 74 trillion in June 2025, witnessing a year-on-year growth of 21.9%. Despite this strong overall expansion, mutual fund penetration varies widely across Indian states and Union Territories. ADVERTISEMENT In the northern belt, the Jammu & Kashmir (J&K) region has the lowest per capita AUM—also the fourth lowest across India—according to AMFI data for June 2025. This penetration is measured through per capita AUM (Assets Under Management), calculated by dividing a state's total AUM by its population. In terms of contribution to the industry's AUM, a mere 0.14% comes from the J&K region (including Ladakh). While J&K shows signs of improving financial inclusion, Ladakh continues to lag. J&K contributed Rs 10,825 crore to the industry's AUM, whereas Ladakh's contribution stood at just Rs 44 crore. This marginal figure highlights the lack of financial inclusion and awareness in the region. Known for its stunning landscapes and rich cultural heritage, Ladakh has seen a surge in tourism and economic activity in recent years. The presence of a large number of defense personnel further adds to its strategic importance. However, the region's financial landscape remains underdeveloped, with limited access to diverse investment products. A negligible mutual fund distributor network, low financial literacy, and geographical challenges are key reasons for poor mutual fund penetration in Ladakh. To address this gap, Nippon India Mutual Fund has recently opened a branch in Leh—the first Asset Management Company (AMC) to do so in the region. The company plans to improve financial literacy through investor awareness programs and aims to offer structured investment options for locals, defense personnel, and ex-servicemen. 'We aim to contribute to the region's economic growth and empower individuals to achieve their financial goals. Financialization of savings through increased participation of retail investors in mutual funds is a key focus area,' says Sundeep Sikka, ED and CEO of Nippon Life India Asset Management. ADVERTISEMENT Financialization is growing across the country, evident from the expansion of demat accounts and rising SIP flows. Sikka hopes Ladakh's population will benefit from India's growth story by gaining access to capital markets through mutual the outlook for Indian equity markets, Sikka remains cautiously optimistic. He notes that ongoing geopolitical tensions and earnings concerns may impact markets in the near term. However, he expects domestic-driven sectors to perform better, with earnings growth in FY 2025–26 likely to outpace FY 2024–25, driven by interest rate cuts and a potential rise in consumption.
Time of India
4 days ago
- Business
- Time of India
Leh moves toward greater financial inclusion
The mutual fund industry 's assets surpassed Rs 74 trillion in June 2025, witnessing a year-on-year growth of 21.9%. Despite this strong overall expansion, mutual fund penetration varies widely across Indian states and Union Territories. In the northern belt, the Jammu & Kashmir (J&K) region has the lowest per capita AUM—also the fourth lowest across India—according to AMFI data for June 2025. This penetration is measured through per capita AUM ( Assets Under Management ), calculated by dividing a state's total AUM by its population. In terms of contribution to the industry's AUM, a mere 0.14% comes from the J&K region (including Ladakh). While J&K shows signs of improving financial inclusion, Ladakh continues to lag. J&K contributed Rs 10,825 crore to the industry's AUM, whereas Ladakh's contribution stood at just Rs 44 crore. This marginal figure highlights the lack of financial inclusion and awareness in the region. Known for its stunning landscapes and rich cultural heritage, Ladakh has seen a surge in tourism and economic activity in recent years. The presence of a large number of defense personnel further adds to its strategic importance. However, the region's financial landscape remains underdeveloped, with limited access to diverse investment products. A negligible mutual fund distributor network, low financial literacy, and geographical challenges are key reasons for poor mutual fund penetration in Ladakh. To address this gap, Nippon India Mutual Fund has recently opened a branch in Leh—the first Asset Management Company (AMC) to do so in the region. The company plans to improve financial literacy through investor awareness programs and aims to offer structured investment options for locals, defense personnel, and ex-servicemen. 'We aim to contribute to the region's economic growth and empower individuals to achieve their financial goals. Financialization of savings through increased participation of retail investors in mutual funds is a key focus area,' says Sundeep Sikka, ED and CEO of Nippon Life India Asset Management . Financialization is growing across the country, evident from the expansion of demat accounts and rising SIP flows. Sikka hopes Ladakh's population will benefit from India's growth story by gaining access to capital markets through mutual funds. On the outlook for Indian equity markets, Sikka remains cautiously optimistic. He notes that ongoing geopolitical tensions and earnings concerns may impact markets in the near term. However, he expects domestic-driven sectors to perform better, with earnings growth in FY 2025–26 likely to outpace FY 2024–25, driven by interest rate cuts and a potential rise in consumption.
Mint
7 days ago
- Business
- Mint
First in Ladakh, this AMC opens office in Leh-Ladakh region for wider reach
Nippon India Mutual Fund announced the opening of its new branch in Leh, Ladakh in its apparent attempt to spread mutual fund penetration in the state of J&K. With this launch, Nippon claims to be the only mutual fund house with a physical presence in such a high-altitude region. A company statement said that this is India's 167th branch of Nippon spreading across 266 pin codes. It is worth mentioning here that Jammu & Kashmir has very small concentration of mutual fund investment with average assets under management (AAU) of only ₹ 10,800 crore. Meanwhile, it is 24 percent higher than the corresponding data of June 2024 when it stood at ₹ 8,703 crore. Other states which have even lower AAUM than J&K include Sikkim ( ₹ 2,400 crore), Arunachal ( ₹ 2,200 crore), Mizoram ( ₹ 1,400 crore), Manipur ( ₹ 1,600 crore), Nagaland ( ₹ 3,500 crore), Meghalaya ( ₹ 5,100 crore) and Tripura ( ₹ 3,100 crore). In contrast, Bihar's AAUM is ₹ 75,100 crore and Assam's AAUM is ₹ 40,300 crore. Nippon India's CEO Sundeep Sikka attributed this feat to the efforts made by former Chief of Army Staff and Kargil veteran General VP Malik. 'Leh holds a unique place in India's national consciousness—not just for its altitude and terrain, but for its strategic and cultural significance," said General VP Malik (Retd), also an independent director at Nippon India MF. 'We continue to deepen our reach because we believe every Indian deserves to participate in the country's growth story and journey towards financial inclusion. We're proud to be the only asset management company in the mutual fund industry with a physical presence in Leh, reinforcing our commitment to empowering investors in every corner of the nation,' said Sundeep Sikka. On the day of launch of its branch, Nippon AMC also conducted an Investor Awareness Program (IAP) for 300 Army personnel to promote financial literacy among the armed forces For all personal finance updates, visit here
Time of India
04-08-2025
- Business
- Time of India
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) Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Economic Times
03-08-2025
- Business
- Economic Times
Nippon India MF sets foot in Leh to deepen financial inclusion; eyes expansion in border regions
In a bid to deepen financial inclusion, Nippon Life India Asset Management Ltd has opened a branch in Leh and is looking to expand its presence in border areas, its CEO Sundeep Sikka said. With this, Nippon Life India Asset Management (NAM India) -- promoted by Japan's Nippon Life Insurance Company -- becomes the only asset management company in the country to establish a physical presence in such a high-altitude region. This marks NAM India's 167th branch and its presence in 266 pin codes across the the reason for opening the branch, Sikka said Ladakh, a Union Territory known for its breathtaking landscapes, has seen a surge in tourism and economic activity in recent years. However, the region's financial landscape remains relatively underdeveloped, with limited access to a diverse range of investment average assets under management (AAUM) in Jammu & Kashmir and Ladakh stood at Rs 10,844 crore as of June 2025, accounting for less than 0.14 per cent of India's total mutual fund assets. In contrast, India's overall mutual fund AAUM reached a staggering Rs 74.80 lakh crore during the same period. "With a presence in Leh, Ladakh, Nippon India Mutual Fund aims to bridge the financial literacy gap, develop a healthy mutual fund ecosystem and offer local residents the opportunity to participate in the Indian capital markets," Sikka company plans to open more branches in India's border regions that often face limited access to formal financial services, the chief executive he did not specify a timeline for the rollout of additional present, Nippon India Mutual Fund is present in all districts and 97 per cent of PIN codes across asked about the challenges of operating in such regions, Sikka pointed out that while many residents have a decent income, there is a clear lack of awareness about formal investment avenues."People here are earning well, but often end up putting their money into unregulated or informal products due to limited financial literacy," he the need for investor education as a top priority, he said the company's first objective is to build trust and understanding around mutual funds."We are also exploring the launch of simple, easy-to-understand products tailored to the needs of first-time investors in these areas," he the company's future expansion strategy, Sikka said Nippon India Mutual Fund is focused on strengthening its digital infrastructure, noting that nearly 70 per cent of new investors are now coming through online the same time, the company remains committed to expanding its physical presence, recognising that on-ground branches play a key role in building trust. Additionally, he revealed plans to launch a Specialised Investment Fund (SIF) aimed at offering more targeted investment solutions.
