March to 11,500 ft: Mutual funds reach Leh to guard investors and soldiers from unregulated financial products

In a historical move aimed at strengthening financial inclusion in one of India’s most remote regions, Nippon India Mutual Fund has opened the country’s first-ever asset management company (AMC) branch in Leh, Ladakh, which is situated at a height of 11,500 feet above sea level. The initiative is expected to give local citizens and defence personnel stationed in the region a safe and formal alternative to unregulated investment schemes, while also enhancing awareness about financial products. It took 61 years for the mutual fund industry to physically enter in Ladakh since the first scheme was launched by UTI in 1964.

The average assets under management (AAUM) in Jammu & Kashmir and Ladakh is Rs 10,844 crore as of June 2025 which still accounts for less than 0.14% of India’s total mutual fund assets. In contrast, India’s overall mutual fund AAUM reached an impressive Rs 74.80 lakh crore as of June 2025. With a presence in Leh, the asset manager 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.

Venkat Nageswar Chalasani, Chief Executive, AMFI at the event in Leh said that everyone believes in the India growth story and the fruit of investment has to be given to every city of the country.

Ladakh, a Union Territory known for its breathtaking landscapes and rich cultural heritage, 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. A senior spokesperson from Leh at the event also said that the people of Ladakh are innocent and they (including army personnel) easily get trapped in ponzi schemes. The move may help them to understand more about regulated investment options like mutual funds.

Sundeep Sikka, ED and CEO of Nippon Life India Asset Management said, “Today, Nippon India Mutual Fund is present in 100% of districts and 97% of pin codes across India. 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.”

With increasing investor awareness and improving access, Jammu & Kashmir is showing promising signs of financial inclusion. The region’s average assets under management (AAUM) grew from Rs 8,703 crore in June 2024 to Rs 10,825 crore in June 2025—a healthy 24% year-on-year rise. “NIMF presence in Leh will help create financial literacy and awareness for potential future investors. We may see entry of more fund houses over the next 5 years,” said Sikka.

India’s financial instruments are rapidly expanding, with over 19 crore demat accounts and 91.9 crore systematic investment plans (SIPs) recorded as of June 2025. This robust growth, coupled with SIP AUM reaching a record Rs 15.30 lakh crore as of June 2025, is a strong indicator of increasing financialisation across the country. However, the data highlights that far-flung area like Leh and Kargil, faces significant challenges regarding financial literacy. In another update from Leh, people who used to travel Delhi, Chandigarh or other major cities to clear NISM exam to become a mutual fund distributor can give the same exam in Leh from August 22.