What Is An Asset Management Company? - emediaposts


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Sunday, October 6, 2019

What Is An Asset Management Company?

An asset management company (AMC) is a firm that invests pooled capital from clients and uses various investments such as stocks, bonds, assets, master partnerships and more. Asset managers or money management firms are colloquially referred to as money managers.

Qualified experts manage asset management companies in managing investor assets. The recession and the financial downturn have affected both the efficiency and mutual funds of these management firms. As the economy is recovering, AMC has started to perform well.

In India, there are many AMCs which are started by Indian companies. Some of the AMCs may have started as a joint venture between Indian companies with a foreign partner. But most Indian AMCs are doing better than Indian companies with an international partner in many areas.

An asset management company (AMC) is a firm that invests in securities that match the firm's actual economic goals, which is the money it receives from its customers. Individual investors are supplied with asset management companies with more diversification and investment options than they would otherwise be able to use themselves. AMC pension schemes, mutual funds, hedge funds and these companies derive revenue by charging or commissioning or charging in proportion to the total assets under management (AUM).

According to industry research, India's AMC will grow at a speed of over 30% in a year. Businesses are waiting to seize this opportunity to expand their company and make more income.

In India, asset management companies are broadly divided into three types: 
·       Bank-sponsored mutual funds,
·       Mutual fund institutions and
·       Private sector mutual funds.

To date, there are a total of 44 asset management firms in India (February 2017). Thirty-five of these AMCs are private sector entities.

AMFI was incorporated in 1995 as a non-profit organization of all registered AMCs in India and asset management companies are part of the Association of Mutual Funds in India (AMFI).

10 Asset Management Companies in India

1. ICICI Prudential Mutual Fund. It is one of the top AMCs in India
2. HDFC Mutual Fund
3. Reliance Mutual Fund
4. Aditya Birla Sun Life Mutual Fund
5. SBI Mutual Fund
6. UTI Mutual Fund
7. Kotak Mahindra Mutual Fund
8. Franklin Templeton Mutual Fund
9. DSP Blackrock Mutual Fund
10. Axis Mutual Fund

What does an asset management company do?

Asset management companies manage various plans of mutual funds where investors invest their cash to get returns. This cash is invested in multiple financial instruments such as equity securities or debt securities. AMC does investment portfolio preparation.

Role of the Asset Management Company in the mutual fund

An AMC is the regulating body of a mutual fund. It oversees all the administrative, managerial and operating functions of the mutual fund. The brand name of AMC is dependent on the performance of the mutual fund schemes under its banner.

Who regulates Asset Management Company in India?

The AMC in India is regulated by the Capital Markets Regulator, the Securities and Exchange Board of India (SEBI).

What is the largest asset management company in the world?

The size of the AMC is evaluated according to the value of the net assets managed. Blackrock AMC is currently the largest AMC in the world.

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