With Bajaj already has life insurance and general insurance business tie-ups with Allianz since eight years, the Rahul Bajaj-owned Bajaj Finserv lately entered into a shareholders' deal with Allianz Global Investors, which is venturing into the asset management arena in India.

The Munich, Germany-based insurer will hold a majority stake of 51 percent in the asset management joint venture.

The company's 'planned' foray into Indian asset management sector comes after a rather turbulent fiscal year, in which the 35-member mutual fund industry in India plunged amid the deepening recession. According to the figures provided by the Association of Mutual Funds in India, the total average assets under management of the mutual fund industry were Rs 4,93,285 crore on March 31,2009.

In a statement hailing the insurer's venture, Bajaj Finserv Chairman, Rahul Bajaj, said: "We are delighted to extend our partnership to the mutual fund business, which may take about a year to commence operations."

With the newly-announced joint venture, Allianz joins the league of other overseas firms to have entered the mutual fund industry in India in the last two years - including the South Korean Mirae Asset, and the French Axa. Goldman Sachs, with currently-deferred plans to start mutual fund operations in India, and a few other companies are taking their time to decide the right time to take the proverbial 'plunge'!