10 Best AMCs (Asset Management Company) In India 2022

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. 

What is an AMC?

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.

List Of Best AMCs in India

Refer to the table below to check some of the best AMCs in India:

Disclaimer: Mutual fund investments are subjected to market risk. Read all scheme-related documents carefully before investing.

Top AMC Details

1. Navi Mutual Fund: 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.

2. Mirae Asset: 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.
3. HSBC Mutual Fund: HSBC Mutual Fund is one of the leading AMCs in India. It currently serves more than 1 million customers with offices spread across India.
4. DSP Mutual Fund: 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.
5. HDFC Mutual Fund: 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.
6. ICICI Prudential Mutual Fund: One of the biggest AMCs in the country, ICICI Prudential was launched in the year 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.
7. Aditya Birla Sun Life Mutual Fund: 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.
8. IDFC Mutual Fund: 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.
9. L&T Mutual Fund: 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, L&T Emerging Businesses Fund, to name a few.
10. Kotak Mahindra Mutual Fund: 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.

Also Read: Portfolio management services S Vs Mutual Funds

How are Funds Managed by AMCs?

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. 

1. Asset Allocation – Depending on the theme of the mutual fund, the AMC decides on the asset classes that investments can be made into. For instance, Large Cap funds can primarily invest only in companies with a substantial market capitalization.
2. Research – Once the asset class is decided, the fund manager and the AMC conduct extensive research to analyse the performance of individual assets in the broader asset class.
3. Construct Portfolio – Based on these findings, the AMC and the asset manager construct a portfolio consisting of the perfect securities to buy or sell based on the set parameters.
4. Periodic Review and Reinvestment – AMCs continuously assess the market situation, and are always on the lookout for perfect investment opportunities. They periodically review and assess the performance of the Mutual Funds and take appropriate decisions based on the performance of the fund. 

Also Read: Lump Sum Investment In Mutual Funds

How to Choose an AMC

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.

1. AMC’s Reputation: 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.
2. Peer Reviews – 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.
3. Fund Managers: 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.

SEBI, AMFI & RBI guidelines 

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:

1. No AMC shall serve as a trustee of any mutual fund
2. The AMC shall not invest in any of its own schemes unless full disclosure of its intention to invest has been made clearly in the offer documents. 
3. The AMC should not have a net worth of fewer than ₹10 crores. 
4. AMCs must submit compliance certificates to trustees on a bi-monthly basis. 
5. The Chairman of the AMC should not be a trustee of any mutual fund.
6. The Important Persons in an AMC should not have any prior economic convictions (fraud, insider trading, etc)

Final Word

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.

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Disclaimer- Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.