Aiming to bring in more foreign funds into India, Reliance Capital Asset Management (RCAM), the funds management arm of Anil Ambani-controlled Reliance Capital, is launching a fund in South Korea for retail and institutional investors in the South Asian country that will invest in the Indian market.
This is the seventh fund that RCAM is launching to attract foreign money into India, with a target to top $5 billion worth of assets in the next three years, a company source said.
RCAM is launching the India focused fund in Korea along with its Korean partner Samsung Asset Management. The fund will directly invest in the stocks of Indian mid and small cap companies with long term potential. The fund will be managed by Samsung Asset Management while RCAM will be the advisor to its Korean partner. Samsung Asset Management is the fund management arm of Korean conglomerate Samsung Group, globally known more for its presence in the mobile and electronics space.
At present RCAM has three India focused funds in Japan, in which the aggregate assets under management is about $1 billion. It also manages two India focused funds in Singapore and one more in Mauritius. Most of its assets are managed under the three Japanese funds. Nippon Life, one of the largest life insurers in the world, holds 49% stake in RCAM. The Korean fund management firm, however, does not hold any stake in RCAM but has signed a memorandum of understanding (MoU) with the Indian funds management major.
Currently RCAM manages assets worth more than Rs 2 lakh crore spread across mutual funds, pension funds, managed accounts and offshore funds.