Investment firm Nippon India MF embarks on a novel venture, elevating mutual funds 11,500 feet above sea level for a preliminary initiative
In a significant move to expand its reach, Nippon India MF has opened the first-ever office of a mutual fund in Leh, a city nestled high in the Himalayas. This move is part of an ongoing effort to improve financial inclusion in underserved regions and boost local public confidence.
The establishment of the mutual fund office in Leh comes after Nippon India MF started from scratch, identifying and educating distributors and investors, and setting up physical infrastructure in the region. Sundeep Sikka, CEO of Nippon India MF, mentioned that setting up the office was challenging due to the high altitude.
The physical presence of Nippon India MF in Leh is expected to boost local public confidence, given the presence of all leading public and private sector banks in the region. The growth of the fund house in Leh and surrounding areas could bring leading fund houses and the entire eco-system to this small city.
Jigmat Diskit, a hotel receptionist in Leh, has made an initial inquiry to invest small amounts from her salary for her son's education. Tsewang Namgyal, a car driver in Leh, plans to invest ₹250 a month through a systematic investment plan in Nippon mutual fund. These examples highlight the growing financial confidence and awareness in smaller cities.
The share of B-30 assets under management (AUM) in the MF industry has risen from 16% in December 2020 to 18% in March 2025. Over 55% of all new SIP registrations last fiscal were from B-30 locations, with a notable rise in direct plan investments. The success of AMFI initiatives like "MF Sahi hai" and the growing financial confidence and awareness in smaller cities are driving their emergence as active participants in the MF space.
There are only 12 AMC branches in the whole of Jammu and Kashmir, with an average assets under management of about ₹10,500 crore to ₹10,844 crore as of June 2025. This AUM represents roughly 0.14% of India's total mutual fund assets, which stood at around ₹74.8 lakh crore in June 2025. Jammu and Kashmir's mutual fund AUM is a small fraction of the state's GDP (~₹2.5 lakh crore) and indicates relatively low penetration of mutual funds in the region.
To further promote financial literacy, Nippon India MF held a town hall meeting with over 350 army personnel in Leh to educate about the benefits of disciplined investment. The fund house has also opened a training center and the first-ever National Institute of Securities Markets test center in Leh.
Venkat Chalasani, CEO of Association of Mutual Funds in India, expressed surprise that no fund houses have reached Leh-Ladakh region since MF was introduced in India. Tashi Gyalson, chief of Ladakh Autonomous Hill Development Council and a member of BJP, stated that there is an urgent need for more financial literacy in the region due to the risk of losing money in ponzi online schemes.
Nippon India MF has received 11 applications on the first day in Leh, marking a positive response to their efforts to improve financial inclusion in this high-altitude and underserved region. The first online NISM exam to become a MF distributor will be held on August 22 in Leh, paving the way for more locals to participate in the mutual fund market.
Sundeep Sikka, CEO of Nippon India MF, mentions a commitment to preventing miss-selling through internal checks and balances. This commitment is crucial in ensuring that the growth of the mutual fund industry in Leh and other B-30 locations is sustainable and beneficial for all investors.
The growth of Nippon India MF in Leh and surrounding areas could mark a turning point in the financial landscape of these regions, bringing more opportunities and financial stability to the people living there.
- Due to Nippon India MF's expansion into Leh, the mutual fund office is now present in a city that previously only hosted leading public and private banks.
- To boost local public confidence, Nippon India MF has established physical infrastructure in the region, which includes setting up their mutual fund office and a training center.
- Growing financial confidence and awareness in smaller cities, as seen in Leh, have led to increased subscription to Nippon mutual funds by individuals such as Jigmat Diskit and Tsewang Namgyal.
- As observed in the mutual fund industry, the share of B-30 assets under management has risen, along with a significant increase in direct plan investments and new SIP registrations from B-30 locations.
- With only 12 AMC branches in Jammu and Kashmir and a low penetration of mutual funds in the region, it is essential to promote financial literacy to prevent losses in ponzi schemes, as stated by Tashi Gyalson, chief of Ladakh Autonomous Hill Development Council.
