Definition of AMC (Asset Management Company)
An Asset Management Company (AMC) is a company that creates and manages mutual fund schemes, pooling money from investors and investing it in securities according to the scheme's stated objectives. In India, AMCs are regulated by SEBI.
Some of the largest AMCs in India include SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund, and Kotak Mutual Fund. Each AMC offers multiple fund schemes across categories like equity, debt, hybrid, and index funds.
AMCs earn revenue through the expense ratio charged to investors. The fund manager employed by the AMC makes all the buy and sell decisions for the fund portfolio. AMCs must publish their NAVs daily, portfolios monthly, and performance data regularly as required by SEBI regulations.