Japan's Nomura has bought a 35 per cent stake in LIC Mutual Fund in a deal which values the Indian fund firm at 8 billion rupees ($163 million), Reuters reported.

The deal gives Nomura an entry into one of the fastest growing mutual fund markets and offers LIC Mutual Fund, which is largely a debt manager, international exposure and equity fund management expertise.

The deal is also a sign of how developed countries’ firms, such as US, UK, Swiss and other European banks, have been trying to tap into the wealth of India, despite last year’s setback of sharp falls in Indian stocks.

"It is very important to have a local partner with a strong reputation here. Life Insurance Corp is the best brand in India with respect to customer confidence," Takumi Shibata, deputy president and chief operating officer of Nomura Holdings, was quoted by the news service as saying.

The deal values the Indian fund firm, a unit of state-owned Life Insurance Corp, at about 2.5 per cent of average assets of 324.1 billion rupees as at June.