Asset Management Company (AMC)

An AMC invests the funds collected from a pool of individual investors and manages mutual funds by investing the money in various asset classes, including equity and debt instruments. Here you can find the list of Asset Management Companies (AMCs) in India.

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Asset Management Company

An Asset Management Company is a firm that handles investments for its investors. It pools money from multiple clients to create diversified investment portfolios with equity and debt instruments. Most of the AMCs primarily manage mutual funds.

What is an Asset Management Company?

An Asset Management Company (AMC), or a mutual fund house, makes investment decisions on behalf of its clients based on their financial goals and risk appetite. It creates a pool of funds using money from different clients and invests in a range of assets to meet its financial goal. AMCs can be classified into different categories based on the choice of investment like mutual funds, hedge funds and private equity.
AMCs generate revenue through fees and commissions charged to investors for managing their funds.

Why to choose top Asset Management Companies for your investments?

Investing requires a lot of research and market knowledge that may not be available to regular retail investors. Direct investment in the market can expose you to greater risk, as limited funds may prevent you from achieving broad diversification and spreading risk effectively. AMCs offer the expertise and experience of professional fund managers to even small investors. With a large fund at their disposal, AMCs tend to minimise the risk and create a balanced portfolio with diversification of funds based on market research and analysis of trends. The investors can also benefit from the expertise of the fund managers and their timely decisions as per market trends.

List of Top Mutual Fund Companies in India

With the stock market investments going up, India has seen a sharp spike in the number of mutual fund managers in the country. Here's a list of the top 10 mutual fund houses to consider for investment: :

  • SBI Mutual Fund
  • HDFC Mutual Fund
  • ICICI Prudential Mutual Fund
  • Axis Mutual Fund
  • Aditya Birla Sun Life Mutual Fund
  • Nippon India Mutual Fund
  • Kotak Mahindra Mutual Fund
  • DSP Mutual Fund
  • Bandhan Mutual Fund
  • UTI Mutual Fund

Benefits of investing through top AMCs

AMCs offer professional expertise in fund management to its clients. By pooling money from different clients, AMCs create a large corpus that facilitates the diversification of funds and minimises the risk associated with investments in the stock markets. These firms use advanced risk management strategies to shield the investment from regular market volatility. Further, investing through an AMC also eases the process involved in investment and allows regular tracking of your money. It is a cost-effective alternative to direct investment in the market.

Factors to consider before choosing an AMC?

Do thorough research on the past performance of an AMC when selecting a fund manager. While past performance may not guarantee future results, it can serve as an indicator of the fund manager's ability to generate returns. Choose an AMC that aligns with your needs and risk appetite. Compare the schemes and fees of different companies to select the most cost-effective option. Additionally, review the liquidity and exit options offered by the AMC. This will allow you to have greater flexibility in accessing your investment when needed.

How does an Asset Management Company manage funds?

After collecting the money from different clients, AMCs create a fund based on the investment objectives and risk profile of the customers. This categorisation can also be based on the preferred investment instruments of investments like debt, equities and money market assets. Fund managers then analyse the market trends and potential investment options to get maximum returns while lowering the risks. This is done in a way that ensures proper diversification of funds to guard against risks in case of market volatility. Regular monitoring of the investment is done for an effective exit strategy to maximise returns. AMCs provide a regular report, detailing the performance of the assets it has invested in. This ensures transparency for the clients.

How Upstox simplifies AMC selection?

Investors looking to find the best fit for AMC to manage their investment may refer to the Upstox app and website. It features a dedicated page listing the top AMCs in India. It gives you a one-stop solution for everything you need to know about the AMCs and their mutual fund scheme. For a seamless mutual fund investment explore the AMCs through the Upstox app and website.

Regulatory Bodies For An AMC?

Asset Management Companies function under the supervision of a board of trustees and are regulated by the Securities and Exchange Board of India (SEBI). On the other hand, the Association of Mutual Funds in India (AMFI) is the apex industry body. It often issues operational guidelines and works as a watchdog for a transparent and ethic-driven financial services sector, specifically for mutual funds. The Reserve Bank of India also plays a key role in the regulation of AMCs, especially subjects concerning investments in money markets and debt instruments.

FAQs

What is an AMC?

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An Asset Management Company (AMC) is a financial institution responsible for managing and investing the funds pooled from investors into various securities, such as stocks, bonds, and other financial instruments.

How to choose an AMC?

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Gather details about an AMC’s past performance and reputation in the market before investing your money. Additional information like the expenses ratio, fees and charges, track record of fund managers and the expertise of the AMC in a particular sector could be helpful in selecting the suitable fund house for your financial goals.

Which are the top AMCs in India?

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Some of the AMCs in India are:

  • HDFC Asset Management Company
  • ICICI Prudential Asset Management Company
  • SBI Funds Management
  • Aditya Birla Sun Life Asset Management
  • Nippon India Asset Management

Who regulates Mutual Fund companies in India?

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The Securities and Exchange Board of India (SEBI) is the primary regulator of asset management companies in the country. Further, the Association of Mutual Funds in India (AMFI) is the apex industry body that ensures the ethical functioning of the sector.

How many Mutual Fund companies are listed In India?

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As per the AMFI data, there are 46 registered mutual fund houses in India.