This makes it the largest Indian equity fund with mandate to invest in the international markets and also the largest equity fund for the asset manager.

Tata mutual fund managed assets worth about Rs17,400 crore at the end of September, data from the Association of Mutual Funds in India showed.

TIGIF will be converted into an open-ended fund after 3 years. The scheme follows the fund-of-funds structure, which most overseas funds launched in recent times have adopted.

Thirty-five per cent of the assets of TIGIF will be earmarked for global investments while the remaining 65 per cent would be invested in the domestic market, thereby ensuring tax benefits to investors. Also, Tata MF has tied up with global fund house Invesco Plc''s Asia Infrastructure Fund.

While the level of diversification of 15-35 per cent is not adequate to benefit in a real sense from the global markets, domestic investment too is a good bet, considering the proven track record of the existing infrastructure funds.