Asset Management Companies (AMC)

An Asset Management Company, regulated by SEBI, functions as a financial entity that aggregates funds from diverse investors. These funds are then strategically invested across a range of financial instruments, including stocks, bonds, and real estate, with the aim of generating returns for the investors.

The distinctive characteristic of AMCs lies in their Assets Under Management (AUM), serving as a comprehensive measure of the total value of investments overseen by the fund house on behalf of its investors. The growth of AUM not only signifies the trust and confidence investors place in the fund house for managing their finances but also empowers AMCs to capitalize on economies of scale, thereby enhancing their overall profitability.

Showing Top 15 Asset Management Companies

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AMC AUM Schemes
HDFC Asset Management Co LtdHDFC Asset Management Co Ltd
₹1,02,187 Cr396
SBI Funds Management LtdSBI Funds Management Ltd
₹14,323 Cr468
Baroda BNP Paribas Asset Management India Pvt. Ltd.Baroda BNP Paribas Asset Management India Pvt. Ltd.
₹1,438 Cr312
Trust Asset Management Private LimitedTrust Asset Management Private Limited
₹1,472 Cr58
Groww Asset Management Ltd.Groww Asset Management Ltd.
₹152 Cr144
Motilal Oswal Asset Management Co. LtdMotilal Oswal Asset Management Co. Ltd
₹1,668 Cr135
Tata Asset Management LimitedTata Asset Management Limited
₹1,69,886 Cr334
Aditya Birla Sun Life AMC LtdAditya Birla Sun Life AMC Ltd
₹17,180 Cr570
Zerodha Asset Management Private LimitedZerodha Asset Management Private Limited
₹1,737 Cr4
ICICI Prudential Asset Management Company LimitedICICI Prudential Asset Management Company Limited
₹1,77,104 Cr739
PGIM India Asset Management Private LimitedPGIM India Asset Management Private Limited
₹2,100 Cr257
JM Financial Asset Management LimitedJM Financial Asset Management Limited
₹216 Cr186
Invesco Asset Management (India) Private LtdInvesco Asset Management (India) Private Ltd
₹233 Cr299
Kotak Mahindra Asset Management Co LtdKotak Mahindra Asset Management Co Ltd
₹24,507 Cr444
WhiteOak Capital Asset Management LimitedWhiteOak Capital Asset Management Limited
₹2,585 Cr68

About Asset Management Companies

How to Choose a Fund House?arrowHow are the funds managed by an AMC?arrowHow do Asset Management Company functions?arrowGoverning Bodies for an AMCarrowReliability of AMC compared to Banksarrow

How to Choose a Fund House?

When choosing a mutual fund company (AMC), investors should consider the following:

  • Reputation of the AMC: Look for consistent performance, stability in management, and a clean track record. Research the company's reputation, often available on their website.
  • Credibility of the Fund Manager: The fund manager plays a crucial role in investment decisions. Evaluate their credentials, experience, and past performance.

By checking these factors, investors can make informed decisions about which AMC to trust with their investments.

How are the funds managed by an AMC?

When you invest with an asset management company (AMC), the AMC takes responsibility for managing a portfolio to meet your financial goals. This involves:

  • Research and Analysis: The fund manager conducts in-depth research to select securities that outperform investor expectations.
  • Asset Allocation: Based on research and investor goals, the asset manager allocates funds to different assets, adhering to SEBI-approved guidelines.
  • Portfolio Creation: The AMC makes crucial decisions to construct a balanced portfolio capable of performing well in various market conditions, considering risk factors.
  • Performance Review: AMCs regularly evaluate the fund's performance, including factors like net asset value (NAV) and returns, to maintain a positive reputation and keep investors satisfied.

How do Asset Management Company functions?

An Asset Management Company (AMC) gathers funds from diverse investors with varying financial objectives. By investing this substantial pool in a highly diversified portfolio, the AMC leverages economies of scale, securing discounts on purchases. The resulting returns from the portfolio are distributed among individual retail investors.

AMCs offer services with charges structured either on a fixed basis or commission-based. The fixed fee involves a regular, predetermined amount paid monthly or quarterly for maintaining the fund.

Governing Bodies for an AMC

Asset Management Companies (AMCs) in India operate under the oversight of two key regulatory bodies, with governance provided by a board of trustees:

Securities and Exchange Board of India (SEBI):
SEBI, as the capital market regulator, regulates and supervises the operations of all mutual fund companies in India.

Association of Mutual Funds in India (AMFI):
AMFI is a statutory body established by mutual fund companies to promote transparency and ethical practices within the financial industry. All fund houses must adhere to AMFI's regulations. In addition, banks serving as sponsors are subject to regulation by the Reserve Bank of India (RBI), SEBI, and AMFI. It's important to note that the overall governance of these regulatory bodies, including SEBI, AMFI, and RBI, is overseen by the RBI itself.

Reliability of AMC compared to Banks

Contrary to common perceptions, mutual fund companies are equally reliable and secure as banks. They fall under the regulatory purview of the Reserve Bank of India and the Ministry of Finance, ensuring the safety of investments.

These companies, appointed by sponsors and trustees, manage funds and operate under the scrutiny of trustees regulated by SEBI and AMFI. This structure guarantees transparency, accountability, and impartiality, making mutual funds a safe and advisable choice for wealth optimization and maximizing tax savings.

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