What is AMC in Mutual Funds?

What is AMC in Mutual Funds? Top 10 AMCs in India

Have you ever thought about who is responsible for the decision where the money invested in a mutual fund goes? And thus the answer comes from the key player in the mutual fund industry – the AMC (i.e. the Asset Management Company).

This article completely unfolds AMC in mutual funds and their role, functions, and no matter how significant they are to your investment experience.

What is AMC in Mutual Fund?

If you are an investor or planning to invest in mutual funds, the thought of ‘What is AMC in mutual fund?’ must have crossed your mind. AMC full form in mutual fund stands for Asset Management Company which means an organisation in INDIA that provides backbone and thought process for investments in mutual fund schemes. The AMC meaning in mutual funds is to act as the steering for investors’ pooled money by making the decisions, and by making sure that the fund achieves the objectives.

Key things to consider about AMCs

  • AMCs are licensed with SEBI to follow the rules imposed by this financial regulator.
  • Each mutual fund scheme has a particular AMC for it.
  • INDIA has many AMCs whose mutual fund schemes range from investment for different objectives to that of high to low risk appetite.

The Vital Roles of an AMC in Mutual Fund

AMC fulfils a multi-dimensional role in the mutual fund sector. Some of its key functions of AMC in mutual fund are:

  • Fund Management: Asset management companies (AMCs) appoint fund managers who have the experience plus they actively manage the investment portfolio of each mutual fund scheme. They study, investigate, and make investment decisions according to the fund scheme’s objectives and current market conditions.
  • Portfolio Construction: AMCs create a portfolio of diversified securities for each scheme. This diversification enables you to reduce risk and possibly improve returns.
  • Compliance and Regulations: AMCs oversee the compliance with SEBI rules and regulations that govern mutual fund operations. This gives investors confidence and assurance of transparency.
  • Transaction Processing: AMCs, on behalf of the investors, process all transactions, including subscription (purchase), redemption (selling units), and dividend payments.
  • Investor Communication: AMCs provide updates on the scheme’s performance to investors on a regular basis, in the form of factsheets and annual reports. They could be associated in investor education programs to popularise financial literacy

To sum up, AMCs provide a comprehensive service for a mutual fund so that the scheme works smoothly and investors receive the best returns possible.

Selecting the Most Appropriate AMC for Your Investment Plans

Considering the number of AMCs prevalent in INDIA, choosing the most appropriate one for your investment journey becomes a critical task. Here are some key factors to consider while choosing AMC in mutual fund:

  • Track Record: Study how AMC performed during various recessions in the past. In this regard, the fund sectors should ensure that they keep to the same guidelines.
  • Investment Philosophy: Do the AMC’s investment strategies compliment your risk tolerance as well as financial goals? Keep this question in mind to evaluate the AMC.
  • Fund Management Expertise: Check the level of expertise and life experience of the fund managers at the schemes you’re considering.
  • Fund Expenses: Verify the expense ratio by different AMCs for their similar schemes to decide on the same. The decreased share of expenses would contribute to receiving a higher profit.

Remember, choosing the perfect AMC can take your investment journey to a greater level. With the help of this analysis, you can make a decision that complies with your financial objectives.

Top 10 Mutual Fund AMCs in India

There are a lot of AMC in mutual fund in India but there is always the best in every field. To decide which one is best, here are Top 10 mutual fund AMC in India are:

S.No. AMC Assets Managed (as on 31-Mar-2024)
1 SBI Mutual Fund ₹ 919,519.99 crore
2 ICICI Prudential Mutual Fund ₹ 716,867.52 crores
3 HDFC Mutual Fund ₹ 614,665.43 crores
4 Nippon India Mutual Fund ₹ 438,276.85 crores
5 Kotak Mahindra Mutual Fund ₹ 381,239.57 crores
6 Aditya Birla Sun Life Mutual Fund ₹ 315,777.58 crores
7 UTI Mutual Fund ₹ 286,593.27 crores
8 Axis Mutual Fund ₹ 266,826.23 crores
9 DSP Mutual Fund ₹ 138,986.33 crores
10 Bandhan Mutual Fund ₹ 134,908.07 crores

Resources and Tools at SMC Global Securities

At SMC Global Securities, we understand how significant it is to choose a trustworthy platform for your journey that covers all aspects of investment. In addition to the mutual fund options, SMC Global Securities provides a wide range of financial products and services that can help you meet your financial objectives.

Everything you need for a Successful Investment is Available Right here:

  • Wide Array of Mutual Funds: The SMC Global Securities have a complete menu of mutual fund schemes from different AMCs in INDIA, intended for meeting different investment objectives and risk profiles. Whether you need an equity fund with aggressive growth, a debt fund with steady return or a combination of the two with a balanced hybrid fund, SMC Global Securities has it all.
  • SIP Investment Flexibility: Invest to a chosen mutual fund through SIPs. SIPs help you to invest a fixed amount periodically thereby enforcing discipline and averages out the cost of your investment by spreading it over time. Know more on SIP investment via SMC Global Securities.
  • Distribution of IPOs: Take a part in the growth story of India by investing in initial public offerings (IPOs) through SMC Global Securities. Here, you get the opportunity to invest early “on the ground floor” in aspiring companies with different IPOs.
  • Fixed Income Products: Discover a wide range of fixed income instruments which include bonds, debentures and fixed deposit plans that will ensure constant return to your portfolio.

Conclusion

Through the SMC Global Securities resources, tools as well as professional expertise, you can venture into the mutual fund investment journey knowing that you are on sound financial ground. SMC Global Securities believe in being your reliable partner in your financial journey. If you are unclear about the process of ‘what is AMC in mutual fund?’ SMC Global Securities will make it clear for you.

Partnering with SMC Global Securities you will never get to search again about AMC meaning in mutual fund. Remember the fact that nothing is as effective as a well informed investor. Team up with SMC Global Securities and the AMC in mutual funds to realise the value of having investments in your financial journey!

References

SEBI (Securities and Exchange Board of India) https://www.sebi.gov.in/

AMFI (Association of Mutual Funds in India) https://www.amfiindia.com/

https://www.moneycontrol.com/glossary/mutual-fund/asset-management-company-%28amc%29_469.html

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