- Date : 08/03/2023
- Read: 4 mins
An Asset Management Company (AMC) provides professional services for buying and selling assets on behalf of its clients through the expertise of financial experts, known as fund managers.
An asset management firm pools funds from investors and allocates them into different investment instruments, such as debt, equities, real estate, gold, etc. The firm can manage multiple types of securities and funds catering to different financial objectives.
1. SBI Asset Management Company
SBI Mutual Fund was launched in 1987 as a joint venture between the State Bank of India (SBI) and Amundi. The fund house uses Amundi’s fund management expertise and SBI’s extensive distribution network to offer top-tier services and solutions to all its investors. This is currently the largest mutual fund company in India with an AUM of Rs. 71,236,205.96 crore (after the end of the last quarter of 2022).
Its top three trending mutual funds include:
- SBI Contra Fund
- SBI Bluechip Fund
- SBI Long-Term Equity Fund
2. ICICI Prudential Asset Management Company
ICICI Prudential was launched in 1993. It is another asset management firm in the country managed by a banking financial institution. It focuses on bridging the gap between savings and investments. Through its range of investment solutions, it aims to create long-term wealth for investors. The company has a total AUM of Rs. 48,808,084.50 crore after the end of the last quarter of 2022.
The firm is particularly known for its growth funds
- ICICI Prudential Long-Term Plan
- ICICI Prudential Banking and Financial Services Fund
- ICICI Prudential MIP 25
HDFC Mutual Fund was established in 1999 under a joint venture between the Housing Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited. It offers Exchange-Traded Funds (ETFs), Fund of Funds (FoFs), and an entire range of mutual fund schemes in the debt, hybrid, and equity categories. The AUM of the company, as of December 2022, was Rs. 44,479,627.40 crore.
The company’s top 3 mutual fund schemes include
- HDFC Small Cap Fund
- HDFC Mid-Cap Opportunities Fund
- HDFC Retirement Savings Fund
4. Nippon India Asset Management Company
Nippon India AMC, formerly known as Reliance Asset Management Limited, was founded by the late Dhirubhai Ambani. In 2019, Japan-based Nippon Life Insurance acquired a 75% stake in the fund house. After the end of the last quarter of 2022, this AMC had a total AUM of Rs. 29,280,257.02 crore.
Nippon India Mutual Fund’s top-rated funds include:
- Nippon India Small Cap Fund Direct
- Nippon India Focused Equity Fund Direct
- Nippon India Growth Fund Direct
5. Kotak Mahindra Asset Management Company
Kotak Mahindra Mutual Fund was established in 1998 and has recently overtaken the Aditya Birla AMC to become the fifth-largest mutual fund house in India. This fund house offers several schemes to cater to the investors with varying risk appetites and investment objectives. The AUM of the company, after the end of the last quarter of 2022, was Rs. 28,659,989.83 crore. Its top-rated funds include:
- Kotak Small Cap Fund
- Kotak Emerging Equity Fund
- Kotak Infrastructure & Economic Reform Fund
Impact of Asset Management Company Services on Investors
An Asset Management Company (AMC) provides investors with a range of investment opportunities. However, investors must conduct thorough research on the fund house’s experience, assets under management, the credibility of the fund manager, market reputation, and commission and fees before investing in its funds.