List of Asset Management Companies
|Scheme Name||Fund Categoty||Min. Investment(₹)||Open Date||Close Date|
|ICICI Pru India Opportunities Fund (G)||Equity||5,000.00||Dec 26, 2018||Jan 09, 2019|
|ICICI Pru India Opportunities Fund (D)||Equity||5,000.00||Dec 26, 2018||Jan 09, 2019|
|YES Liquid Fund - Regular (G)||Liquid Funds||10,000.00||Jan 02, 2019||Jan 16, 2019|
|YES Liquid Fund - Regular (Div-D)RI||Liquid Funds||10,000.00||Jan 02, 2019||Jan 16, 2019|
|YES Liquid Fund - Regular (Div-W)||Liquid Funds||10,000.00||Jan 02, 2019||Jan 16, 2019|
|YES Liquid Fund - Regular (Div-F)||Liquid Funds||10,000.00||Jan 02, 2019||Jan 16, 2019|
|YES Liquid Fund - Regular (Div-M)||Liquid Funds||10,000.00||Jan 02, 2019||Jan 16, 2019|
What is an Asset Management Company (AMC)
AMC, also known as Asset Management Company (AMC), is a company tasked with managing pooled funds from various clients. The investments could be made by different instruments such as shares, bonds, real estate, etc. AMCs not only handle high net worth individuals ' portfolios, they also control hedge funds and pension plans. They also pool funds from smaller investors in order to better meet their interests through mechanisms such as mutual funds, index funds, and exchange-traded funds. Asset Management Company selling public mutual funds is also known as Mutual Fund Company, Investment Firm, and Fund Management Company.
Asset Management Roles
The major role of AMC in mutual fund is managing the mutual fund and making decisions for investors' benefit. Under a fund manager's management, it invests the money in accordance with the scheme's trust deed and financial target.
Following are the roles played by an AMC in terms of Mutual Fund:
Allocation of Assets
Every mutual fund has a specific financial goal or theme–this allows the asset manager to shortlist and determines which asset to invest in. For example, most debt-oriented funds placed under equity management no more than 20 percent of their assets. Or a balanced fund can choose to invest in equity just 60% of assets. This is the allocation of assets–one of the key decisions that a fund manager has to make every day.
Creating a portfolio on a daily basis relies on many in-depth studies. Analysts periodically research the business, micro-and macro-economic aspects, fund results, and pass the reports on to the manager He makes decisions that can help the company surpass the benchmark and rise above its rivals (comparison apple to apple). Then the fund manager must take the final call for stock selection which will determine the fund's fate.
Building a Portfolio
An AMC will have a slew of consultants and analysts reporting to the fund manager their industry forecasts and trends. He chooses what securities to purchase, sell, or retain on the basis of these results and investment goals. This is how a company builds a portfolio that is largely dependent on the manager's experience and expertise.
Even with disclaimers in the fine print, if it can't justify its investment decisions, an AMC faces a lot of investors and trustees flak. For example, the asset management company must provide data to unit owners that have a direct impact on their assets. It also needs to send investors regular updates on sales and repurchases, NAV, portfolio info, etc.
How an Asset Management Company functions
Because they have a greater resource pool than the individual investor can reach on their own, asset management companies provide more diversification and investment opportunities to investors. Buying for so many consumers helps AMCs to exercise economies of scale, sometimes offering their sales a price discount. Asset Management Company functions on pooling capital and paying out equal returns often which allow investors to circumvent the minimum investment criteria that are often needed when purchasing securities on their own, as well as the ability to invest with a smaller amount of investment funds in a greater variety of securities.
In some cases, AMCs are charging fees from their investors. Such firms charge a fee which is measured as a percentage of the total assets under management (AUM) of the company.
What makes an AMC a Top AMC
Every AMC online follows the investment target of the schemes before investing and during the ups and downs of the market you have to check the track record and performance history of the investment schemes in the past.
Knowing your AMC well before you spend your hard-earned money is very critical.
Ensure that the criteria below are met while selecting a best AMC for mutual fund.
An AMC's credibility
Credibility is established over a few years, say 5 years or 10 years, by consistency in results. The investor should go through the performance through the annual scheme and AMC reports, market-prevailing analyses, and SEBI, AMFI, and RBI compliance reports.
The integrity of the Fund Manager
AMC deals with its fund manager in cooperation. The fund manager's success is then AMC's results. An investor must, therefore, look for the fund manager's past performance w.r.t handling the assets and funds.
Price and valuation
An investor should consider looking at the fund's cost, the value creation and return that the fund provides before choosing any fund.
Charges and commissions
Some AMCs charge their services a fixed fee, while others charge a commission on the fund's return. A fixed fee over commission is considered because the outflow sum will always be calculated by an investor in advance.