Kolkata, May 28 (PTI) Nippon India Mutual Fund (MF) is betting big on deeper retail penetration and expansion in smaller towns to double its investor base to 5 crore over the next 7-8 years, a top official said on Wednesday.

The fund house is particularly bullish on eastern India, where growth continues to outpace the national average, the official added.

While the overall mutual fund industry in the region grew 20 per cent year-on-year, Nippon India clocked over 27 per cent growth, with Systematic Investment Plan (SIP) inflows rising 55 per cent in FY24 , significantly ahead of the industry's 38 per cent in the region and 34 per cent nationwide.

"Our strategy is clear, we want to go deeper into the retail market, especially in emerging and underpenetrated regions. That's where India's growth lies. Our current investor base is 2 crore out of 6 crore MF unique investors," said Sundeep Sikka, Executive Director and CEO, Nippon India Mutual Fund.

"Nippon India is the largest foreign mutual fund in India. What sets us apart is that we have grown the fastest among the top five, despite not having a banking sponsor," he added.

The fund house added 82 lakh investors in FY24, outpacing several bank-sponsored asset management companies (AMCs), and recorded a 27 per cent year-on-year growth in assets under management (AUM), he said.

With 269 branches nationwide, Nippon India has established a robust presence in eastern India, operating in 50 locations across 11 states and has achieved what it calls a "triple milestone" in the region: Rs 50,000 crore in AUM, 50 lakh investor folios, and 50 physical touchpoints in FY'25, Sikka added.

"Key cities like Kolkata, Patna and Ranchi have seen phenomenal three-year SIP growth — 170 per cent, 159 per cent, and 162 per cent, respectively — far outpacing industry averages," Sikka said.

Retail AUM in the east has grown by 29 per cent over the past three years, against the industry average of 25 per cent, with cities such as Bhubaneswar and Durgapur outpacing metros like Delhi and Mumbai in growth rates, he added.

Sikka attributed the strong momentum to greater awareness, investor education and a growing shift from unorganised savings to formal investment avenues in tier-II and tier-III cities.

On the product front, Nippon India is maintaining a focus on simplicity — prioritising existing offerings and SIPs over frequent new fund launches.

"We're not in a hurry to flood the market with NFOs. Our aim is long-term, sustainable investor growth," Sikka said. PTI BSM MNB