The Mumbai-based Motilal Oswal AM, a subsidiary of Motilal Oswal Financial Services Group (MOSt), manages Gemini’s £10m India MOSt fund and has done since the launch in December 2010.
The proposed fund would be launched with a target yield of between 10% and 12%.
Stuart Alexander, the managing director of Gemini Investment Management, says the firm anticipates a rebound in the value the rupee that could potentially lead to a higher target yield.
“We are looking at a turnaround [of the rupee’s decline against the pound],” says Alexander.
“Over the medium-to long term, we think we could get higher than the 10-12%,”.
This latest investment fund would be Gemini’s second in its own right and would be aimed at using the sovereign and corporate debt markets in India.
The company says it will be release further details of the launch in the spring.
India has reported foreign direct investment inflows averaging $15 billion (£9.4 billion) over the past five years, as the government begins to relax the restrictions on foreign capital flows to the subcontinent.
Gemini IM’s decision to join Motilal Oswal again is based on the firm’s “outstanding track record and in-depth knowledge of India’s economy.
“MOSt understands the market trends and investment potential of the sub-continent from a local perspective.”