  In this paper we investigate the intercalation effects of Iron (Fe) in the
van der Waals gap of Bi$_2$Se$_3$ on the magnetic and transport properties
using first-principles band structure estimations combined using dynamical
mean-field theory. Inclusion of electronic correlations and spin-orbit coupling
effects are found to result in the emergence of ferromagnetic properties in an
intercalated Bi$_2$Se$_3$. Further the Dirac cone in the band structure of
Bismuth Selenide is modified via Fe intercalation at moderate densities.
Accompanied by novel structural effects, the onset of an orbital selective
metal insulator transition in the Fe 3$d$ orbitals brings about a magnetic
phase transition in the Fe intercalated Bi$_2$Se$_3$. Further we have explored
the dependency of the inter-orbital electron-electron correlations on the
magnetic ordering and the effects of intercalation in establishing new physical
properties.
