Reliance MF to launch Islamic fund in Malaysia soon

Reliance Mutual Fund will shortly launch an Islamic fund in Malaysia, a top company official said.

"We have set up a subsidiary and it is launching an Islamic fund in Malaysia shortly," Reliance Capital Asset Management CEO, Sundeep Sikka, told reporters on the sidelines of a press meet here.

The company now plans to open its first office in Kuala Lumpur in Malaysia.

Reliance Capital, together with Kuwait's Global Investment House, were given the nod last November by the Securities Commission (SC) to establish their Islamic fund management operations.

The concept of Islamic funds, which invest in Sharia-compliant stocks, is catching up fast in India.

The objective of such funds is to make hundreds of rich and religious Muslim people, who otherwise do not put money in interest-yielding instruments or non-Sharia compliant stocks, to invest in them.