In the northern belt, the Jammu & Kashmir (J&K) region has the lowest per capita AUM—also the fourth lowest across India—according to AMFI data for June 2025. This penetration is measured through per capita AUM (Assets Under Management), calculated by dividing a state’s total AUM by its population.
In terms of contribution to the industry’s AUM, a mere 0.14% comes from the J&K region (including Ladakh). While J&K shows signs of improving financial inclusion, Ladakh continues to lag. J&K contributed Rs 10,825 crore to the industry’s AUM, whereas Ladakh’s contribution stood at just Rs 44 crore. This marginal figure highlights the lack of financial inclusion and awareness in the region.
Known for its stunning landscapes and rich cultural heritage, Ladakh has seen a surge in tourism and economic activity in recent years. The presence of a large number of defense personnel further adds to its strategic importance. However, the region’s financial landscape remains underdeveloped, with limited access to diverse investment products. A negligible mutual fund distributor network, low financial literacy, and geographical challenges are key reasons for poor mutual fund penetration in Ladakh.
To address this gap, Nippon India Mutual Fund has recently opened a branch in Leh—the first Asset Management Company (AMC) to do so in the region. The company plans to improve financial literacy through investor awareness programs and aims to offer structured investment options for locals, defense personnel, and ex-servicemen.
“We aim to contribute to the region’s economic growth and empower individuals to achieve their financial goals. Financialization of savings through increased participation of retail investors in mutual funds is a key focus area,” says Sundeep Sikka, ED and CEO of Nippon Life India Asset Management.Financialization is growing across the country, evident from the expansion of demat accounts and rising SIP flows. Sikka hopes Ladakh’s population will benefit from India’s growth story by gaining access to capital markets through mutual funds.On the outlook for Indian equity markets, Sikka remains cautiously optimistic. He notes that ongoing geopolitical tensions and earnings concerns may impact markets in the near term. However, he expects domestic-driven sectors to perform better, with earnings growth in FY 2025–26 likely to outpace FY 2024–25, driven by interest rate cuts and a potential rise in consumption.