An investment house in India is launching a new fund aimed at wealthy foreign clients.

ArthVeda Fund Management, an India-based investment house, has rolled out a $250 million real estate fund for investors in the Gulf Co-operation Council region to develop mid-income residences in India.

The Star Fund 11 will be offered to wealthy investors in the Gulf and other non-India markets, the firm confirmed to this publication.

The fund aims to achieve an internal rate of return of between 18 and 21 per cent in dollar terms and there will be a maximum fund tenure of 60 months.

Investors sought for the fund include family offices, high net worth individuals, large corporates and other institutions; the fund has a minimum investment size of $500,000.