Reliance Capital Asset Management's subsidiary is set to launch two Islamic funds in Malaysia by July 2010.

Reliance Capital Asset Management will also launch products for retail investors in two years, according to Reuters.

The India-based asset management firm is expected to launch a fund investing in Indian stocks soon and a quantitative global equity fund investing in the US, Europe and Asia in July. Both funds would be managed out of Malaysia.

Vikrant Gugnani, international businesses CEO at Reliance Capital, said: “The long-term objective is to target the retail sharia market in the region. We believe the retail story in Malaysia has yet to unfold and we want to be positioned well before to take advantage of it,” reported the news agency

Reliance Capital Asset Management, part of financial services firm Reliance Capital, manages more than $33bn.