What is an AMC?
An asset management company (AMC) is a corporation that invests on behalf of its clients in a pooled fund of capital. The capital is utilized to fund diverse investments across asset types. Asset management firms are sometimes referred to as money managers or money management businesses.
There are quite some different types of Asset Management Companies that come in varied forms and structures.
- Hedge funds
- Mutual funds
- Index funds
- Exchange-traded funds
- Private equity funds
- Other funds
Their investments vary on the type of clients too. They are:
- Retail investors
- Institutional investors
- Public sector (government organizations)
- Private sector
- High-net-worth clients
Let us take a deeper look at AMCs:
Asset Management Companies explained.
Individual investors typically lack the skills and resources required to generate high-yielding investment returns over time consistently. As a result, many investors rely on asset management firms to invest their money on their behalf.
Asset management firms are often composed of a group of financial specialists with extensive market knowledge. They can create returns for investors by utilizing diversification and complicated investing methods with many pooled funds.
AMCs often charge their clients a fee based on a percentage of total assets under-managed (AUM). The total amount of capital contributed by investors is referred to as AUM.
An asset management fund may charge AUM a 2% fee. Consider an asset manager in charge of a $100 million fund. For one year or another, the costs will be $2 million ($100 million x 2.0% ).
Hedge funds are known for demanding exorbitant fees, often more than 20%. Hedge funds, on the other hand, use more unconventional and aggressive investing tactics to produce profits.
In this article, we will look at the 10 best AMC – Asset Management Company of India.
Top AMCs of India:
1. ICICI Prudential Asset Management Company Ltd
The AMC collaborates between ICICI Bank of India, one of India’s biggest banks, and Prudential of the United Kingdom. While Prudential Plc. is a significant player in the UK’s financial services sector. This AMC, founded on October 13, 1993, and based in Mumbai, has an asset base of around Rs 2,93,338 crore and provides over 1400 products. The AMC offers a wide range of service options and receives high marks. The bulk of the programs available are reasonably priced for ordinary investors. In addition, ICICI Prudential AMC takes pride in offering better risk control in mutual fund investing.
Notable Funds:
- ICICI Prudential Focused Bluechip Equity Fund
- ICICI Prudential Balanced Fund
2. HDFC Mutual Fund
HDFC is a significant provider of financial services in India. HDFC AMC was established in 1999 and is regarded as one of the best AMCs in the country. The AMC created a reputation for itself after acquiring eight funds from the Zurich India Mutual Fund. HDFC Mutual Fund debuted its initial product in 2000 and steadily evolved over the previous decade and a half. There are over 11 different kinds of mutual fund plans. The firm recently went public and had a whopping 65% increase on its first day of trading.
Notable Funds:
- HDFC Balanced Fund
- HDFC Top 100 Fund
3. Reliance Mutual Fund (Now Nippon India Mutual Fund)
Reliance Mutual Fund renamed Nippon India Mutual Fund, is one of India’s fastest-growing mutual fund firms. The new name was given when Japan’s Nippon Life Insurance acquired a 75 per cent stake in Reliance Nippon Life Asset Management from Reliance Capital.
The fund is sponsored by a partnership between Nippon Life Insurance (Japan) and Reliance Capital (India). The firm has a proven track record of producing reliable results. Nippon India Mutual Fund has a presence in over 150 Indian towns.
There is something for everyone in the varied assortment of offers. Over 55 lakh active portfolios are managed by the business. Customers can pick from nearly 200 different schemes. While Reliance presently has fewer AUM than ICICI and HDFC, the fund provides over 1100 ETFs and is well-known in India.
Notable Funds:
- Nippon India Small Cap Fund
- Nippon India Liquid Fund
4. Aditya Birla Sun Life Mutual Fund
The fund company now manages approximately Rs 2,41,107 crore in AUM distributed over 600+ schemes. The AMC was founded in 1994 as a joint venture between the Aditya Birla Group of India and Sun Life Financial Inc. of Canada. In the mutual fund business, the business has now developed a solid reputation and earned widespread recognition.
Birla Sun Life Mutual Fund provides a diverse range of mutual fund schemes, from diversified equity plans to sector-specific plans. Debt mutual funds, hybrid schemes, fund of fund schemes, monthly income plans, and offshore funds are also available. It has a wide variety of investments and a solid financial foundation.
Notable Funds:
- Aditya Birla Sun Life Tax Relief 96
- Aditya Birla Sun Life Balanced 95 Fund.
5. SBI Mutual Fund
SBI Fund Management Company manages the SBI Mutual Fund. SBI Fund Management Company is the country’s oldest asset management firm. It has a strong history of investment and fund management spanning over two and a half decades. The AMC collaborates between the State Bank of India (SBI) and Amundi, a European asset management firm.
The fund company manages about Rs 2,05,273 crore in assets and provides over 550 products. It has a widespread presence in the country, with over 200 acceptance locations around the country. SBI Mutual Fund has a user base of well over 50 lakhs. The business is one of India’s most reputable and well-known mutual fund scheme providers. In addition, the organization is a market leader in offshore fund management.
Notable Funds:
- SBI Blue Chip Fund
- SBI Magnum Multi-Cap Fund.
6. IDFC Mutual Fund
The Government of India established IDFC Ltd in 1997. IDFC Asset Management Company Ltd manages the IDFC Mutual Fund entirely. The AMC offers a variety of products and schemes to both institutional and individual investors. The corporation intends to develop assets through techniques such as stock and debt market savings.
AMC’s infrastructure investments and portfolios are among the finest in the industry. IDFC has significant ties to both the corporate and public sectors. It enables it to provide intelligent and unbiased wealth management and growth advice to investors. Over 50 mutual fund schemes are in existence to meet the demands of investors.
Notable Funds:
- IDFC Super Saver Income Fund
- IDFC Large-Cap Fund
7. DSP Mutual Fund
AMC began as a collaboration between the 150-year-old DSP and the BlackRock Group. DSP has opted to purchase out BlackRock Inc S 40% shareholding in the joint venture. As a result, DSP BlackRock Mutual Fund was renamed DSP Mutual Fund. With approximately Rs 86,255 crore in AUM and over 250 funds.
Notable Funds:
- DSP Focus 25 Fund
- DSP Opportunities Fund
8. Franklin Templeton Mutual Fund
Franklin Templeton is a firm based in the United States that was founded in 1947. The company’s Indian branch was established in 1996, and its AUM has constantly been rising since then.
Templeton International Inc. is the sponsor of the Franklin Templeton Mutual Fund. Templeton Asset Management manages its assets. This AMC is one of the country’s oldest. It purchased Pioneer ITI in 2002, significantly expanding its user base. It aspires to be a corporation with extensive investment experience and a track record of creating lucrative mutual fund portfolios.
Notable Funds:
- Franklin India Flexi Cap Fund
- Franklin India Low Duration Fund
9. Kotak Mahindra Mutual Fund
Kotak Mahindra Bank is India’s fourth-largest private sector bank, with an AA+ brand grade. Kotak Mahindra’s brand value exceeds USD 481 million. The corporation is ranked 245th out of the top 500 banks in the world. Depending on their risk profile and time horizon, investors can pick from more than 40 schemes the firm offers.
The AMC provides a variety of risk-adjusted schemes based on the needs of the customer. It was the country’s first fund house to introduce a specialized gilt fund plan. The organization presently works in over 70 locations in India and has a strong network of more than 75 locations to assist consumers. The AMC has about Rs 1,19,800 crore in AUM and provides over 300 funds.
Notable Funds:
- Kotak Select Focus Fund
- Kotak Taxsaver Fund.
10. UTI Mutual Fund
UTI was established in 1963 and is one of India’s earliest asset management firms. The AMC UTI Mutual Fund is sponsored by the four largest public sector institutions: SBI, PNB, BoB, and LIC. As the first organization to provide mutual funds, UTI provides some of the best programs with guaranteed returns. Investing in UTI is simple and may be done at any time of year.
The brightest brains in finance handle UTI Mutual Fund schemes. Thus the returns from their schemes are consistent and by their capital appreciation goals. The AMC manages about Rs 1,53,364 crore in AUM and administers approximately 1400 funds across several categories.
Notable Funds:
- UTI Equity Fund
- UTI Bond Fund
Conclusion:
If you are trying to invest in an AMC, the AMCs mentioned above could be an excellent way to start. Asset management firms handle large sums of money collected from investors through various schemes and assist in investing stocks, mutual funds, real estate, and other assets to give a satisfactory return on investment to their investors. As a result, investors put their faith in the firm and the fund manager who will be in charge of their hard-earned money.
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