New Delhi, May 19 -- Portfolio manager Abakkus Asset Manager is planning to launch a mutual fund business, four people aware of he matter said, becoming the latest money manager catering to wealthy individuals enticed by the vast pool of retail investors.

Portfolio management services (PMS) business is hard to expand, given the limited number of rich individuals and high investment ticket sizes. By contrast, a mutual fund business is much easier to scale, as the investment size is much smaller and thus accessible to the masses. This explains portfolio managers' rush for seeking mutual fund licences from the Securities and Exchange Board of India (Sebi).

Founded by Sunil Singhania, former chief investment officer of Reliance Mutual Fund,...