Mutual fund investments are managed by fund managers, who work for mutual fund companies. These companies are called Asset Management Companies or AMCs. 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. AMCs are specialised companies that invest in the pooled funds into the different asset classes based on the category and the purpose of the fund. But choosing an AMC is one of the most important criteria to consider before investing. This article lists the 10 best mutual fund companies in India.
Get all the information you need to know before choosing the right AMC to suit your needs. Read on!
Asset Management Companies, commonly referred to as AMCs, are financial institutions that pool money from many investors and invest the funds in different securities. These firms have fund managers who formulate investment strategies for the scheme to generate the best possible returns. This blog discusses the top AMCs in India. Read on.
Refer to the table below* to check some of the best mutual fund companies in India:
|Asset Management Companies
|AUM (as of 2022)
|Navi Mutual Fund
|Rs. 1,300.00 Cr
|Mirae Asset Mutual Fund
|Rs. 1,00,908.71 Cr
|HSBC Mutual Fund
|Rs. 12,637.24 Cr
|DSP Mutual Fund
|Rs. 1,07,911.34 Cr
|HDFC Mutual Fund
|Rs. 4,32,084.97 Cr
|ICICI Prudential Mutual Fund
|Rs. 4,68,196.92 Cr
|Aditya Birla Sun Life Mutual Fund
|Rs. 2,95,804.91 Cr
|IDFC Mutual Fund
|Rs. 1,21,032.15 Cr
|L&T Mutual Fund
|Rs. 75,591.56 Cr
|Kotak Mahindra Mutual Fund
|Rs. 2,84,617.8 Cr
|Axis Mutual Fund
|Rs. 2,60,335.18 Cr
|UTI Mutual Fund
|Rs. 2,23,841.53 Cr
|Edelweiss Mutual Fund
|Rs. 78642.32 Cr
|SBI Mutual Fund
|Rs. 6,47,067.24 Cr
|Franklin Templeton Mutual Fund
|Rs. 62,876.29 Cr
|Canara Robeco Mutual Fund
|Rs. 47,955.87 Cr
|Invesco Mutual Fund
|Rs. 43,862.82 Cr
|Sundaram Mutual Fund
|Rs. 43,106.83 Cr
|Motilal Oswal Mutual Fund
|Rs. 30,619.97 Cr
|PPFAS Mutual Fund
|Rs. 23,113.6 Cr
*Note: This table is only for illustration and educational purposes
Navi Mutual Fund is an asset management company and is a part of Navi technologies. With Navi Mutual Fund, you can invest in a wide range of low-cost index funds, including Navi Nifty 50 Index Fund, Navi US Total Stock Market Fund of Fund, Navi NASDAQ Fund of Fund, etc. The AMC already has a significant AUM within a short span of time.
Mirae Asset Mutual Fund is quite a popular AMC among new and seasoned investors. Founded in 2007, it is a subsidiary of South Korea’s Mirae Asset Global Investments Co. Limited. Mirae Asset Mutual Fund is mostly known for the exceptional performance of its equity funds.
HSBC Mutual Fund is one of the leading AMCs in India. It currently serves more than 1 million customers with offices spread across India.
An arm of the 153-year-old DSP Group, DSP Mutual Fund is one of the premier asset management companies in India. The fund house offers a wide range of mutual fund schemes spread across categories like debt, equity, and hybrid funds.
A popular and trustworthy AMC, HDFC Mutual Fund is home to a host of actively-managed equity funds. The fund house’s past records are noteworthy in spite of seeing a dip this year, mostly owing to market volatility.
One of the biggest AMCs in the country, ICICI Prudential was launched in 1993. ICICI Prudential Mutual Fund is yet another top Mutual Fund company that is managed by a banking financial institution. They have successfully catered to the demands of over 7.4 million investors as of August 2021, and the number is expected to increase due to the course of time. They are particularly known for their growth funds like ICICI Prudential MIP 25, ICICI Prudential Banking and Financial Services Fund, and ICICI Prudential Long Term Plan, to name a few.
Consistent performance is the name of the game when it comes to Aditya Birla Sun Life Mutual Fund. They are particularly well known for offering diverse schemes and plans to investors, to help the investors achieve their financial goals – from Equity funds, hybrid funds, and ELSS to Liquid funds, Aditya Birla Sun Life Mutual Fund has it all. They are well known for Mutual funds like Aditya Birla Sun Life Regular Savings Fund, Aditya Birla Sun Life Small Cap Fund, and Aditya Birla Sun Life Equity Hybrid 95 Fund among others.
In terms of AUM, IDFC Mutual Fund is right there among the top 10. Currently, IDFC has more than 250 mutual fund schemes spread across various segments.
The infrastructure giant, Larsen, and Toubro have their very own Asset Management Company, offering wonderful schemes and plans for investors across the country to invest in. L&T Mutual funds are particularly known for their emphasis on delivering supreme long-term risk-adjusted-performance. Some of their popular funds are the L&T Midcap Fund, L&T Tax Advantage Fund, and L&T Emerging Businesses Fund, to name a few.
Kotak Mahindra was the first AMC to introduce Gilt Funds. Currently, Kotak AMC offers 260+ mutual fund schemes spread across various categories and suited for investors with varying risk appetites.
Axis Mutual Fund, or the Axis Asset Management Company Ltd., is the mutual fund investment wing of Axis Bank. The Bank holds a 74.99% share in the AMC. Schroder Singapore Holdings Private Ltd holds the remaining percentage of the shares.
When it comes to asset size in India, Axis Mutual Fund is the seventh largest fund house. This AMC offers 68 mutual fund schemes as of May 31, 2022. Out of all the schemes that it offers, 22 are equity schemes, 26 schemes are debt mutual funds and 6 are hybrid mutual fund schemes. In addition, it offers 13 other schemes. The AMC had 1.28 crore active investor accounts as of March 31, 2022.
This is one of the leading AMCs in India. Four of the largest Indian financial institutions (State Bank of India, Bank of Baroda, Punjab National Bank and Life Insurance Corporation of India) back UTI Mutual Fund. Each of these institutions holds 18.24% shares in UTI Mutual Fund.
This AMC operates 250 schemes and has almost 11 million investors. The characteristic feature of this AMC is that it reaches out to many rural and semi-urban regions in India. UTI Mutual Fund offers nearly 177 mutual fund schemes. It has nearly 25 equity schemes, 119 debt schemes, 28 hybrid schemes, 5 ETFs, gold and fund of fund schemes.
Edelweiss Asset Management Ltd. operates Edelweiss Mutual Fund, which is one of the youngest AMCs in India. The parent company that controls the entire group of companies is Edelweiss Financial Services Ltd. It aims to present its investors with a broad range of investment products and support in order to aid in wealth creation.
Their total Assets Under Management (AUM) is Rs.78642.32 crore, making them one of the largest AMCs in India. It offers 12 equity mutual fund schemes, 14 debt mutual fund schemes and 4 hybrid mutual fund schemes. In addition, it also offers schemes that belong to other categories. Edelweiss Mutual Fund was the first AMC in India to bring MSCI (Morgan Stanley Capital International), a leading index provider to this country.
This asset management company was set up in 1987 and was the second one after UTI started operating in 1963. SBI Mutual Fund is a joint venture of State Bank of India and Amundi, a French AMC. While SBI has a 63% stake in SBI Funds Management Pvt Ltd, the remaining percentage of the stakes is held by Amundi.
SBI Mutual Fund provides 142 primary schemes to its customers. It offers 36 equity funds, 81 debt mutual funds and 14 hybrid mutual funds. Additionally, it offers 11 other schemes that include ETFs (Exchange Traded Funds), gold mutual funds and index funds.
In India, Franklin Templeton Investments began operating as Templeton Asset Management India Pvt Ltd in 1996. The AMC offers 52 mutual fund schemes of which 25 are debt schemes and 3 are hybrid mutual fund schemes. It also offers schemes belonging to other categories. Franklin Templeton Mutual Fund held 1.6% of the entire industry AUM as of May 31, 2022.
It is one of India’s oldest asset management companies. It started operating as CanBank Mutual Fund and was set up in 1987. However, it got incorporated in 1993. It was renamed Canara Robeco Mutual Fund after Canara Bank and Robeco group entered into a joint venture. Currently, this AMC has a network of 22 branches across India and serves the interests of 35.71 lakh investors.
This AMC first entered India in 2013 in partnership with Religare Securities Ltd. In 2016, it acquired its partner’s shares and renamed itself Invesco Mutual Fund. It is the 17th largest asset manager in India with a presence in around 42 Indian cities.
Invesco Mutual Fund offers customers 78 mutual fund schemes. It has 14 equity mutual fund schemes, 53 debt-oriented mutual funds, 4 hybrid mutual funds and 7 other schemes. This AMC focuses on a sustainable business model and uses it to enhance the dynamics of a business in a rapidly changing world.
This AMC was established in 1996 as a subsidiary of Sundaram Finance Limited. It is committed to make mutual fund schemes accessible to every retail investor in India which has led to its growth and popularity. Sundaram Mutual Fund offers various schemes spread across equity, hybrid and fixed-income categories. In addition, it also provides Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) for people who have a high net worth. It was the first AMC to offer mutual fund schemes in emerging fields like mid-cap and micro-cap, capex, rural India and leadership.
It is one of the leading AMCs in India and has its presence in around 600 places across India. In addition, it has over 9 lakh registered clients. The AMC is sponsored and promoted by Motilal Oswal Financial Services Limited (MOFSL) and offers 31 mutual fund schemes. Out of these 31 schemes, there are 16 equity mutual fund schemes, 3 are debt funds and 3 are hybrid schemes. Additionally, it offers 9 schemes that fall under other categories.
This AMC has a different approach than other fund houses. For example, it has prolonged holding periods and believes in reaping benefits slowly and steadily. Staying true to their unique approach, they offer 4 mutual fund schemes–Parag Parikh Tax Saver Fund, Parag Parikh Liquid Fund, Parag Parikh Conservative Hybrid Fund and Parag Parikh Flexi Cap Fund.
The AMC does not have any sales team because it does not believe in attracting customers with heavy promotions and advertisements. Instead it focuses on building strong relationships with its existing customers. Moreover, PPFAS Mutual Fund uses cash flow and low debt to curate their portfolios.
Following are the types of mutual funds offered by AMCs in India:
There are four basic types of funds depending on types of asset classes- debt, equity, money market and hybrid or balanced funds.
Following are the sub-types of equity funds:
Equity fund: Equity funds invest in stocks and shares of companies. Also known as Growth Funds, they can either be actively or passively managed. Active equity funds are managed by professional fund managers appointed by an AMC. Passive equity funds are not managed by fund managers and they track a popular market Index (for example, Nifty Fifty). Equity funds are further classified into large-cap, small-cap, mid-cap and micro-cap depending on the market capitalisation.
Debt fund: A debt fund invests in fixed income assets such as corporate and government bonds, corporate debt securities, money market instruments etc.
Money market fund: This fund is ideal for investors with short term investment goals and moderate returns.
Hybrid funds: Also known as balanced funds, it is a blend of bonds and stocks. The ratio is either fixed or variable. These are ideal for those who can take up higher risks.
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.
The process of building a reputation as an Asset Management Company is very hard. The successful track records come after decades of success and deliver consistent returns. Though past performance isn’t indicative of future results, the reputation of an AMC is the first thing you should look for when choosing an AMC.
Other investors might already have experience with the different AMCs and would be able to help you navigate through the different nuances of choosing the right AMCs, for they’re fresh off navigating similar problems as you.
The track record of fund managers and their investment styles are public records. Research the individual styles of each fund manager, and choose the AMC that fits your needs the best.
AMFI: AMFI or Association of Mutual Funds of India plays a vital role in the management of the mutual fund industry in India. It looks after the daily distribution of NAV and also regulates the monthly flow of data in various categories of mutual funds. AMFI plays a key role in settling disputes and issues faced by investors. It works according to the guidelines set by SEBI.
RBI: RBI also has a significant role in regulating AMCs provided the bank is one of the contributors along with AMFI and SEBI.
SEBI: An AMC is operated by a board of trustees who in turn are instructed by SEBI, the Securities and Exchange Board of India. SEBI makes sure that the investors’ interest is taken care of and that an AMC is complying with the guidelines laid down by it.
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 (AMCs) play an important role in managing your funds. 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 and to start investing, visit Navi Mutual Fund.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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.
Ans: AMCs are answerable to their investors for their decisions on asset management. The performance of an AMC is evaluated in comparison to a benchmark index. The Benchmark index is considered the standard market index.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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