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What is meant by AMC ?

AMC stands for Asset Management Company (AMC); a firm that is responsible for the investment of pooled funds from diverse clients. The investments could be through various instruments like stocks, bonds, real estate, etc. AMCs do not just manage investments for high net worth individuals, but also manage hedge funds and pension plans. They also pool together funds from smaller investors through structures like mutual funds, index funds and exchange traded funds to better serve their needs. Asset Management Companies that offer public mutual funds are also known as mutual fund companies or investment companies.

Features of Asset Management Companies in India

Asset Management companies in India have access to a much larger pool of funds than any individual investor would have on her own. This allows AMCs to better diversify the investments and provide investing options that may not be available to most individual investors by themselves. Further, the ability to buy for a large number of clients brings economies of scale into play and allows AMCs to get a discounted price. The pooling of funds also allows small investors to meet the minimum investment requirements associated with some of the instruments that they may not have access to otherwise.

Asset Under Management vs Asset Liability Management

Asset under management (AUM) or funds under management (FUM) refers to the market value of all the investments made by an asset management company or any other financial institution. These investments could be made by a mutual fund company, a venture capital firm or a broker either for themselves or for their clients. Therefore, it includes both the capital raised from investors and the capital brought in by the principals of the asset management company.

Asset liability management (ALM), on the other hand, are mechanisms employed to manage the financial risk that can arise due to mismatch between assets and liabilities. The mismatch can happen due to a either a liquidity crunch or changes in interest rates. ALM strategies focus on long-term goals, and aim to expand AUM to meet liabilities that may increase a company’s profitability.

List of Asset Management Companies

Here is a list of asset management companies in India.

  • Franklin Templeton Mutual Fund
  • DSP Mutual Fund
  • Axis Mutual Fund
  • IDFC Mutual Fund
  • UTI Mutual Fund
  • Motilal Oswal Mutual Fund
  • Mirae Asset Mutual Fund