London,Britain has approved the proposal of Indian tycoon Anil Ambani to open a London office of his fund managing company, Reliance Assets Management (RAM), to attract European investors for the first time.

The company, said to be among India's largest fund managers, has won approval from the Financial Services Authority to open the London office with the objective of winning assets from wealthy and institutional investors in Britain and Switzerland.

This was announced in Wednesday's Wealth-Bulletin, a Dow Jones company and online analysis service for the global wealth management industry.

RAM will be represented in Britain by its offshore fund, Emergent India. The minimum investment in the Emergent India fund is $100,000.

Its manager, Sunil Singhania, said: "The timing for marketing may not be right, but from an investment perspective it is just right. From these levels there is a great opportunity for investors, although there will also be some short-term dips."

He is at present looking at capital goods and construction companies. With valuations in these sectors down by more than half, its stocks are starting to look attractive again. He also likes financial services companies on the ground that India is under-banked, although he expects the next six months to be tough for the local economy.

The main worry is the inflation rate in India which is now over 11 percent. On top of it, the looming general elections could also weigh on stocks. "The market might react negatively to the political rhetoric," Singhania said.

Though he did not confirm it, domestic uncertainty has apparently helped persuade the Anil Ambani group to look overseas. It launched a $1.4 billion natural resources fund in March that is allowed to have 35 percent of its portfolio invested outside India. A representative office in Dubai targets non-resident Indians in the Middle East.

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