Ever wondered who manages the money you’ve invested in a mutual fund? They are managed by a fund manager, who works for companies. The companies are called Asset Management Companies or AMC. For instance, let’s say you have decided to invest in Navi Nifty 50 Index Fund. In this case, Navi Mutual Fund is an asset management company. These are specialised companies that invest in the pooled funds (that you and thousands of other investors like you have contributed to) into the different asset classes based on the category and the purpose of the fund.
Choosing an Asset Management company is one of the most important criteria to consider before investing in any mutual fund. In this article, we’ll go through a list of the best AMCs in India, and provide you with all the information that you need to know before choosing the right one that suits your needs.
An AMC is an Asset Management Company that invests pooled funds from institutional and individual investors in various securities. The primary objective of AMCs is to provide optimal returns to investors on their investments in exchange for a certain fee. AMCs invest in both high-risk and low-risk funds to diversify the investment portfolio of the investor. Some of the common investment channels preferred by AMCs include stocks, debt, real-estate, bonds, and pension funds.
Refer to the table below to check some of the best AMCs in India:
|List of AMCs||Quarterly AUM (in Crore)|
|Navi Mutual Fund||Rs.1039.38|
|HSBC Mutual Fund||Rs.12619.40|
|DSP Mutual Fund||Rs.107873.94|
|HDFC Mutual Fund||Rs.432084.97|
|ICICI Prudential Mutual Fund||Rs.468258.02|
|Aditya Birla Sun Life Mutual Fund||Rs.295804.91|
|IDFC Mutual Fund||Rs.121011.43|
|L&T Mutual Fund||Rs.47923.45|
|Kotak Mahindra Mutual Fund||Rs.284617.80|
Disclaimer: Mutual fund investments are subjected to market risk. Read all scheme-related documents carefully before investing.
The Asset Management Company you choose has a carefully constructed process, (crafted under strict guidelines from SEBI, AMFI, and RBI) to manage the funds you’ve entrusted to them. Depending on the objective of the mutual fund, they tend to invest in certain asset classes, as defined by SEBI. Here are some of the criteria that they take into consideration.
Also Read: Lump Sum Investment In Mutual Funds
Asset Management Companies play an important role in the management of your funds. Here are some of the most important points that you need to consider before investing in Mutual Funds.
All Asset Management companies are answerable to multiple regulators in the Indian space. Starting from the Securities and Exchange Board of India (SEBI), The Association of Mutual Funds in India (AMFI) to the Reserve Bank of India (RBI), and the Ministry of Finance, several key regulatory bodies stay on top of every funds’ management to ensure that your funds are handled with the best care.
Some of these guidelines include:
Asset Management Companies play an important role in managing your funds, and it is imperative that you have all the information you need before investing in a Mutual fund. For more information on Navi, as an Asset Management Company, do visit the website.
Ans: Various AMCs have added feathers to their caps over the years. So, it’s impossible to dub a particular agency as the best among the lot. However, if you are considering investing with an AMC, study their fund performance, the reputation of their fund managers, historic returns, etc.
Ans: Mutual fund investments are subject to market risk. The ups and downs in the market will always be there. However, a reputed AMC would always try to ensure that you don’t substantially lose out on the returns when the market is volatile.
Ans: A fund manager is responsible for all the money management activities. Based on the market condition, fund managers decide where to park your money.
Before you go…
Disclaimer- Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.