AMC Full Form in Mutual Fund and Organizational Structure

Finance

AMC Full Form in Mutual Fund and Organizational Structure

AMC full form in mutual fund is Asset Management Company. This company manages mutual funds on the behalf of its investors. In this blog post, we shall explain what is AMC, list of famous AMCs in India, the organizational structure of AMCs and more. 

What is AMC Full Form?

AMC full form is Asset Management Company. It is a SEBI-registered company that pools money from investors and then invests it in a diversified portfolio of assets like stocks, bonds and real estate. The primary role of an AMC is to manage these funds professionally and generate returns for investors via mutual funds or exchange traded funds. The AMC takes care of the fund management, including research and asset allocation. For its services, it charges a management fee. 

The first AMC in India is believed to be the Unit Trust of India (UTI). It was established in 1963, by the Government of India and the Reserve Bank of India. The trust launched India's first mutual fund scheme known as the Unit Scheme 1964 (US-64).

List of Famous AMCs in India

Some of the most famous AMCs in India are as follows:

  1. SBI Mutual Fund (SBI Funds Management Pvt. Ltd.)

  2. ICICI Prudential Mutual Fund (ICICI Prudential Asset Management Co. Ltd.)

  3. HDFC Mutual Fund (HDFC Asset Management Company Ltd.)

  4. UTI Mutual Fund (UTI Asset Management Company Ltd.)

  5. Nippon India Mutual Fund (Nippon Life India Asset Management Ltd.)

  6. Axis Mutual Fund (Axis Asset Management Company Ltd.)

  7. Mirae Asset Mutual Fund (Mirae Asset Investment Managers (India) Pvt. Ltd.)

  8. Tata Mutual Fund (Tata Asset Management Ltd.)

  9. DSP Mutual Fund (DSP Investment Managers Pvt. Ltd.)

  10. Bandhan Mutual Fund (Bandhan Asset Management Co. Ltd.)

  11. Edelweiss Mutual Fund (Edelweiss Asset Management Ltd.)

  12. PPFAS Mutual Fund (PPFAS Asset Management Pvt. Ltd.)

  13. HSBC Mutual Fund (HSBC Asset Management (India) Pvt. Ltd.)

  14. Kotak Mahindra Mutual Fund (Kotak Mahindra Asset Management Co. Ltd.)

  15. Aditya Birla Sun Life Mutual Fund (Aditya Birla Sun Life AMC Ltd.)

How Do AMCs Manage Investors’ Funds?

An investor can invest in mutual funds through an AMC. This company is mainly responsible for managing the mutual fund and making investment decisions that benefit the investors. 

The AMC, led by a professional fund manager, invests the pooled money as per the fund’s specific goals. Below, we have explained how the AMCs manage the funds of their investors in a detailed manner:

Allocation of Assets

Each and every mutual fund has a clear investment objective that helps the fund manager in deciding where to invest the investors’ funds. 

For instance, debt oriented funds usually allocate most of their assets to bonds or other fixed-income securities while balanced funds typically invest in a combination of stocks and fixed income instruments.

Research and Analysis

Creating a strong portfolio depends heavily on research and market analysis. Specialists study various factors like studying about the current market trends and economic conditions of India and other major countries and share their insights with the fund manager. 

The fund manager then uses this data to make investment decisions aligned with the fund’s objectives.

Construction of Portfolio

Within an AMC, there exists a research team that continuously monitors the market and provides updates to the fund manager. Based on the team’s insights and the fund’s goals, the manager decides which securities must be bought or sold. 

The resulting portfolio reflects the strategy, experience and judgment of the fund manager.

Performance Review

AMCs are required to keep investors informed regarding any developments that may affect their mutual fund holdings. Usually, the managers regularly share updates to the investors on the fund’s NAV, sales and repurchases and portfolio composition. 

The AMCs are accountable to investors. They must ensure transparency, address investors’ concerns and manage grievances related to the mutual fund schemes.

Organizational Structure of AMC

The organizational structure of an asset management company is created in such a way that it ensures not just regulatory compliance but also efficient management of the investors’ funds. Generally, the organizational structure of an AMC in India includes the below-mentioned key roles:

Things to Consider for Choosing the Right AMC

Below, we have mentioned some things you need to keep in mind to help you choose the right AMC:

Conclusion

AMC stands for Asset Management Company. This company helps individuals to invest their money in various assets like stocks, bonds and securities, all in exchange for a management fee. Want to start an Asset Management Company in India? Connect with our consultants at Registrationwala for professional guidance and full-fledged assistance in fulfilling all the legal and regulatory requirements!

Frequently Asked Questions (FAQs)

Q1. What is AMC full form in Mutual Fund?

A. AMC full form in Mutual Fund is Asset Management Company.

Q2. What does an AMC do?

A. It invests money of investors in various assets like securities, stocks and bonds, with the goal of generating returns while managing risk.

 

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