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 country.
Explaining 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 products.
The average assets under management (AAUM) in Jammu & Kashmir and Ladakh stood at ₹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 ₹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 said.
The company plans to open more branches in India's border regions that often face limited access to formal financial services, the chief executive said.
However, he did not specify a timeline for the rollout of additional branches.
At present, Nippon India Mutual Fund is present in all districts and 97% of PIN codes across India.
When 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 said.
Highlighting 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 noted.
About the company's future expansion strategy, Sikka said Nippon India Mutual Fund is focused on strengthening its digital infrastructure, noting that nearly 70% of new investors are now coming through online channels.
At 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.
