How can i add this code on functions.php ?

I’m using this code to show related post based from tag, i add it in the template page and works good, but there is a way to add it in functions.php page theme ?

<?php
$tags = wp_get_post_tags($post->ID);
if ($tags) {
	$tag_ids = array();
	foreach($tags as $individual_tag) $tag_ids[] = $individual_tag->term_id;

	$args=array(
		'tag__in' => $tag_ids,
		'post__not_in' => array($post->ID),
		'showposts'=>5, // Number of related posts that will be shown.
		'caller_get_posts'=>1
	);
	$my_query = new wp_query($args);
	if( $my_query->have_posts() ) {
		echo '<h3>Related Posts</h3><ul>';
		while ($my_query->have_posts()) {
			$my_query->the_post();
		?>
			<li><a href="<?php the_permalink() ?>" rel="bookmark" title="Permanent Link to <?php the_title_attribute(); ?>"><?php the_title(); ?></a></li>
		<?php
		}
		echo '</ul>';
	}
}
?>