Ladakhis don’t lack money for mutual funds. They lack awareness, says Nippon India MF CEO
Leh: The main bazaar in Leh played host to a swarm of corporate professionals — a far cry from its usual fare of tourists and trekkers. The launch of Nippon India Mutual Fund’s Leh branch altered the tenor of the market. At least for a single morning.
For Kargil war veteran General VP Malik (retd), this marked not just the opening of doors, but a step toward merging Ladakh with the rest of India.
“We have our presence in all the big cities. But what are we doing for the border areas? Ladakh is developing. There’s so much tourism,” said General Malik, independent director at Nippon India Mutual Fund. “I want people from these areas to get even better integrated — and financial inclusion is an important part of that.”
Stepping into previously uncharted territories has long been part of Nippon India’s governing philosophy, but Ladakh is a region like no other. It comes with regional specificities and is fraught with its very own challenges. The peculiarities of its remote terrain, limited access, and the absence of widespread digital penetration make this a project like no other. It’s also a first of its kind. There are 45 asset management companies (AMCs) in India, and not one has ventured into Ladakh. For local people, this could be a new beginning — a validation of rising income and the fruits of tourism.
“This is going to be a difficult journey,” said Sundeep Sikka, CEO and Executive Director, Nippon Life India Asset Management. “In 64 years, not a single mutual fund has come here. But we need to take the first step.”
The genesis of the project lies in a board meeting at which General Malik, who shares a long history with the region, asked a question — what is Nippon India doing for the borders?
Ladakh has about 8,000 investors, who have put their money on Nippon India Mutual Fund, and a population of about 3 lakh. Up until now, investors would need to courier their applications to metropolitan centres like Delhi and Mumbai. The initiative is also an ode to the services of the armed forces. Along with the branch, the firm has also launched a call centre targeted exclusively at those serving in the region.
“This is for all citizens. It is not dedicated to, but there is an intense focus on the armed forces,” Sikka said.
Education and awareness
Nippon India Mutual Fund appears to hinge its future in Ladakh on two things: tourism and the transformative power of education. Hotels and Airbnbs line the narrow, mountain-framed roads of Ladakh. The market is home to trendy cafes, clothing stores, and travel companies. Amid the bustle are Nippon hoardings: “Because only a SIPahi knows the discipline it takes.”
Haider Shah is the owner of the building, on the first floor of which the Nippon branch sits. He owns the cafe on the ground floor and the Kashmiri restaurant on the second floor. So far, he is yet to invest in mutual funds — he’s stuck to land and gold.
“First there was defence, and now tourism is where our livelihood comes from. It’s been a major boost,” he said. “We can’t depend on the government. Private companies don’t come to Ladakh because it’s so cold here.”
And so, tourism has become the fulcrum on which Shah depends. According to him, tourism was the most lucrative of the handful of options he had after graduating from college.
He is not the only one. Akshay, originally from Dehradun, shifted to Ladakh about five years ago and now works in a store that sells export surplus garments.The shop is largely filled with foreigners, he extols the virtues of North Face trousers and Zara jackets.
“I didn’t want to work in Dehradun. Things are better here — but the number of tourists has reduced after the Pahalgam terror attack,” he said.
Akshay has never invested his money and doesn’t plan to either. It sits tight, secure in his bank account.
Other than the various eateries and stores claiming to sell authentic pashminas and jewellery that brings luck, there are a number of bank branches spread across the market. According to Shah, they don’t hire local people — and those from outside leave a few months in.
“Most of them are empty,” he said.
In contrast, Nippon claims to exclusively be hiring local people and training them as distributors. Stanzin Lazes, 29, just completed her National Institute of Securities Markets (NISM) exam and has now been hired at Nippon.
She’s originally from Matho, a village 26 km from Leh.
“Having a branch will definitely bring more awareness. But people here have trust issues. Older people prefer to invest in FDs and in gold,” she said.
According to data shared by Nippon India, on the day of opening itself, they had 11 applications from local investors.
“India is growing right now. And it’s our time to grow as well,” said one investor, who owns a jewellery store. “I put my money in a small cap. It’s all about risk.”
When it comes to introducing schemes, the firm is making sure they don’t give the people of Ladakh the short end of the stick by giving into preconceived notions and stereotypes about small, seemingly under-developed markets.
“We’re offering all of our products here, and the rest depends on risk appetite,” said Sikka. “Regardless, our products are simple and we don’t believe in fancy names.”
But education remains paramount. Nippon India has also announced an investor training center, where they’ll be conducting programmes, explaining the nuts and bolts of mutual funds to potential investors in two languages: Ladakhi and Hindi.
“People in Leh aren’t investing because they don’t have money. It’s because they’re not aware.”
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No shortcuts
India’s mutual fund assets under management (MF AUM) stands at a hefty Rs 74.80 lakh crore. Ladakh contributes a miniscule 0.14 per cent. But Nippon India is inherently hopeful — citing a lower cost of operations, less manpower, and emphasising the role of distributors.
While there’s no template per se, Sikka drew from their previous experiences in smaller cities. Nippon India now has a presence in 97 per cent of pincodes. Once again, Sikka focused on investor education.
“Education changes everything. And when it comes, it’s like a tsunami,” he said.
Meanwhile, General Malik returned to his long and storied relationship with the area. His first stint in Ladakh was in 1962, during the India-China war. He’s returned time and again since
“I would say I love this place. These mountains are signs of courage, endurance, resistance and unity,” he said. “We have to defend them.”
However, according to him, the Leh branch is only the beginning. He wants to persuade Nippon India to venture into more uncharted territory. Parts of the North East, the Andaman and Nicobar Islands.
The way General Malik ensured the Indian flag was hoisted on Ladakh’s mountains — that’s how deeply and fervently Nippon India wants to spread the message of financial literacy, joked Sikka.
But there are no shortcuts, and a herculean challenge awaits.
“Even getting 20 people here is difficult. And you can’t do business in Bikaner if you’re sitting in BKC [Bandra Kurla Complex],” Sikka said.
The writer was in Leh on invitation of Nippon India Mutual Fund.
(Edited by Aamaan Alam Khan)