"We have plans to enter the mutual fund industry towards the end of this year. But we are looking at the options of introducing the same under the investment banking vehicle or through a separate asset management company," deputy chief executive officer (India) HSBC Group told PTI.

Globally, HSBC asset management handles portfolios for institutions, corporate clients and high networth individuals and provides investment vehicles such as unit trusts and mutual funds, for retail investors wishing to invest locally in european or other global markets.

"HSBC is researching the best way of entering the mutual fund business in India and it has to be separate from our commercial banking operations," he said.

HSBC group currently has three separate operations in India- private banking,investment banking and securities business.

However, Cama said the group had not yet decided on the type of fund HSBC would be launching. "We are looking at various options, whether the fund should be equity based or government securities based," he said.

Cama said mutual funds was a very important business worldwide for the group and also complemented the firm'S personal banking business.

He said in India too, the group expected the mutual funds business to complement its personal banking operations.

The deputy CEO said that worldwide, the asset mangement company managed funds to the tune of 50 billion dollars.

Currently, HSBC operates mutual funds in far east, Europe with special focus in United Kingdom.

Referring to synergies of the mutual fund business with the group's other operations, Cama said, "Mutual funds will offer opportunities to our professional and high networth clients as well as our retail banking customers."

The rules stipulate a firm to set-up an asset management company(AMC) for starting mutual fund business and for foreign firms, a seperate permission from the foreign investment promotion board (FIPB) is also required.