The Indo-Global Infrastructure Fund would invest 35 per cent of its money into global infrastructure companies, mainly in other Asian markets.

The remaining amount would be invested in top-notch infrastructure companies listed on the Indian stock markets.

Ved Prakash Chaturvedi, managing director of Tata Mutual Fund explained that the new product will be a feeder fund in which Tata MF will collect money in India and invest in Invesco's Asia Infrastructure Fund. Invesco, in turn, will invest the funds in various equities across Asia.

The global portfolio for the fund (ex-Asia) will be invested in an ETF (Exchange Traded Fund) called Powershare. Invesco, which has been investing in Asia since 1962, has a strong focus and presence in China.

Some of the Asian stocks which it has invested into are Keppel Corp (Singapore), China Mobile (China), Macquarie Bank (Australia), China Resources and Power (China).

Tata Mutual Fund already has an Infrastructure Fund in India, which has been one of the best performing funds, giving returns of 66.66 per cent.

The new launch is the latest from an Indian fund house after the Reserve Bank of India hiked the total amount that the domestic fund houses can invest in overseas markets to $4 billion with a cap of $200 million per fund house.

The launch follows the relaxation in norms, allowing the fund houses to invest across sectors globally. Earlier, domestic fund houses could invest only in those foreign companies that had at least 10 per cent holdings in their Indian subsidiaries.

Principal PNB, Franklin Templeton, Fidelity, Kotak Mahindra and Sundaram-BNP have launched offshore funds in India, giving the domestic investors an option to diversify their portfolio into other overseas markets.

ICICI-Prudential has also launched an Indo-Asian Equity Fund recently, which is managed by Prudential Asset Management, the foreign partner of the domestic venture.

Tata MF's alliance with Invesco follows a trend whereby fully-owned Indian mutual funds are tying up with a foreign partner for launching offshore funds in the country.

UTI Mutual Fund, the country's oldest asset management company, has tied up with US-based Select Street Global Advisory (SSgA) for a ?Global Navigator Fund?, an offshore fund for the Indian investors.

Similarly, Kotak Mutual Fund joined hands with US-based T Rowe Price for its ?Kotak Global Emerging Market?.