Goldman Sachs, the US investment bank, received approval from India's Foreign Investment Promotion Board to invest INR2 billion ($0.05 billion) to offer asset management and other financial services in India.

The New York-based firm has also been approved to offer investment advisory services, portfolio management and a trustee company for a mutual fund, the government said.

Goldman began offering brokerage services in India in January, a month after receiving a licence that also allowed it to conduct investment banking.

It joins other global banks including JPMorgan Chase, Merrill Lynch, Morgan Stanley and UBS in setting up asset management companies to benefit from growing investor appetite for stocks and wealth management products.

Assets managed by mutual funds in India have more than doubled to INR4.75 trillion from INR2 trillion in the past two years.