Reliance Mutual Fund, promoted by the Anil Dhirubhai Ambani (ADAG) group, has decided to launch an `Islamic fund' in Malaysia.

For the purpose, the company would set up a subsidiary and will launch an Islamic fund soon in the market.

A company official, who was familiar with the latest development informed that the objective of such funds is to make hundreds of rich and religious Muslim people invest their money, who otherwise do not put money in interest-yielding instruments or non-Sharia compliant stocks.

Further, the company also intends to open its first office in Kuala Lumpur in Malaysia.

It should be noted that last November, Reliance Capital, together with Kuwaits Global Investment House, has already secured approval from Securities Commission (SC) to establish their Islamic fund management operations.

In a separate release, Reliance MF today announced the launch of its Reliance Infrastructure Fund, an open-ended fund, which will invest predominantly in companies engaged in infrastructure and infrastructure-related sectors in the country.

Reliance Mutual Fund is managing a corpus of over Rs 88,388 crore as on April 2009.