ICICI Venture, the private equity arm of India's ICICI Bank, is preparing to raise between $150 and $200 million for its India-focused fund from foreign investors, Reuters reports.

The firm currently manages over $2 billion worth of assets and is reportedly looking to generate $500 million, plus an option of another $300 million, the news service said, citing sources close to the matter.

ICICI Venture chief executive officer Vishakha Mulye had confirmed the plan and said that the company has already received $350 million in commitments from institutions, affluent investors, and domestic investors. Mr Mulye had declined to give specific details about the plan, but said that the fund is targetting international investors next.

Equities are turning out to be the investment of choice in India, with the latest Morgan Stanley India Research revealing that over the past five to 15 years equity shares had been the best performing asset class in the country.

The report also forecast that the BSE Sensex will likely deliver an annual return of 14 per cent in the next decade, with property leading the way as more non-resident Indians seek to grow their wealth onshore.