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News Topical, Digital Desk : To strengthen financial inclusion, Nippon Life India Asset Management Limited (Nippon India Mutual Fund) has taken a special initiative, under which this fund house has opened a branch in Leh. Sandeep Sikka, CEO of Nippon India Mutual Fund, said that now this mutual fund company is considering increasing its presence in border areas.
With this, Nippon Life India Asset Management (NAM India), promoted by Nippon Life Insurance Company of Japan, has become the only asset management company in the country to have established its presence in such a high-altitude area, Leh, and opened its branch there.
There is a total network of 167 branches
The newly opened branch in Leh is NAM India's 167th branch and it now has presence in 266 pin codes across the country. Explaining the reason for opening the branch in Leh, Sikka said Ladakh, known for its breathtaking landscape, has witnessed a boom in tourism and economic activities in recent years.
However, the financial landscape of the region remains under-developed, with limited access to a range of investment products. As of June 2025, the average asset under management (AAUM) in Jammu and Kashmir and Ladakh was Rs 10,844 crore, which is less than 0.14 per cent of India's total mutual fund assets.
What is the total AUM of the whole of India
At the same time, India's total mutual fund AAUM reached Rs 74.80 lakh crore by June 2025. Sikka said, "With its presence in Leh, Ladakh, Nippon India Mutual Fund aims to bridge the financial literacy gap, create a healthy mutual fund ecosystem and provide local residents an opportunity to participate in the Indian capital market."
Less knowledge about the right way to invest
Sikka said the company plans to open more branches in India's border areas, where access to formal financial services is often limited. However, he did not give a timeline for opening additional branches. Currently, Nippon India Mutual Fund is present in all districts and 97 percent of PIN codes in India.
When asked about the challenges of operating in remote areas, Sikka said that while many residents have a good income, there is a clear lack of awareness about formal investment avenues. “People here are earning well, but due to limited financial literacy, they often invest their money in unregulated or informal products,” he said.
There is a plan to launch a specialized investment fund
Stating that the need for investor education is a top priority, Sikka said the company's first aim is to build trust and understanding about mutual funds. "We are also looking at launching simple and easy-to-understand products to suit the needs of first-time investors in these sectors," he added.
Regarding the company's future expansion strategy, Sikka said Nippon India Mutual Fund is focusing on strengthening its digital infrastructure, adding that nearly 70 per cent of new investors are now coming through online modes.
Recognising that on-ground branches play a key role in building trust, Sikka said the company is committed to expanding its physical presence. He also revealed plans to launch a Specialised Investment Fund (SIF) to provide more targeted investment solutions.
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