Founded in 2009, Axis AMC has assets under management of $2.3bn and had gross assets of GBP11m at 31 March 2012.
The transaction, which is subject to regulatory approval, is anticipated to complete during this year.
Schroders CEO Michael Dobson said that the company is delighted to enter a long-term partnership with Axis Bank with the objective of building a leading Indian asset management business.
"This enables us to participate in the growth opportunity represented by the Indian mutual fund market
through a strategic relationship with a leading private sector bank," Dobson said.
"Longer term, in addition to distributing Axis AMC’s funds internationally, there will be an opportunity to distribute Schroders funds in India through Axis’ distribution network."
