UK-listed Schroders has agreed to buy a 25% stake in the $2.3bn fund business owned by Axis Bank of India, in an environment where asset management deals across the world have become difficult to pull off due to a general shortage of financial firepower.

Schroders is acquiring Axis Mutual Fund, a statement has confirmed, which will allow the two firms to cross-market products to maximise their cash flows and help the UK manager fill a gap in its extensive emerging market network. The deal was first published in Indian media.