Top AMCs in India

We all want to become wealthy, and one of the best ways to increase your wealth is to invest your money systematically in good quality securities. However, choosing the right investment opportunity is a daunting task, and thus, only a few are able to do it effectively in the long run. This is where Asset Management Companies (AMCs) come into the picture.

In this article, we will provide you with information about the top 5 asset management companies in India.

Asset Management Company (AMC)

Asset management companies are financial institutions that invest pooled funds from clients in various securities and assets. These companies often have a team of professional managers who implement various investment strategies to increase the fund’s value and, accordingly, the investors’ wealth.

Functions of AMCs

The primary functions of AMCs are as follows-

1. AMCs make investment decisions on behalf of their clients.
2. AMC fund managers distribute investor funds among different asset classes based on the market circumstances and objectives of the fund.
3. AMCs conduct in-depth research analysis of market trends and specific securities.
4. AMCs maintain regulatory compliance with SEBI guidelines.
5. AMCs regularly update the performance of funds for the clients.

Top AMCs in India

SBI Mutual Fund

The Indian Trust Act of 1882 created the SBI Mutual Fund Asset Management Company in 1987. The fund’s sponsor, the State Bank of India, founded the AMC. Mumbai is currently home to the AMC’s corporate office. 

2011 saw SBI and AMUNDI (France) signing an agreement to form a joint venture. SBI owned about 62.34% of the shares, while AMUNDI Asset Management Company owned 36.64%. In 2018, the company underwent a digital transformation and now provides various mutual fund products to meet the needs of different customer segments.  

ICICI Prudential Mutual Fund

Established in 1993, this AMC is a joint venture between Prudential Plc, a financial services business in the UK, and ICICI Bank Ltd., one of India’s largest private sector banks. It started with just 6 employees and now employs over 3000 people throughout India. The company’s first scheme, the ICICI Prudential Income Plan, was introduced in 1998 and largely focused on investing in debt and money market assets to provide stable returns. 

The business is renowned for emphasizing risk management and cutting-edge products. There are more than 99 lakh investors in the organisation. It provides more than 126 schemes dispersed throughout several mutual fund types. 

HDFC Mutual Fund

Since 2000, HDFC Mutual Fund, a product of the collaboration between Housing Development Finance Corporation and Standard Life Investments, has become a leader in India’s asset management scene. Headquartered in the UK, their success is driven by a comprehensive offering of equity, debt, and hybrid investment options, including funds of funds and ETFs. 

This caters to diverse investor goals and risk tolerance. Additionally, HDFC Mutual Fund prioritizes a streamlined investment process, maintains strong administrative practices, and boasts a vast distribution network, making investing accessible and secure for a wide audience in India. This commitment to effective tools and a secure environment has cemented their position as a top Asset Management Company.

Nippon India Mutual Fund

Nippon India Mutual Fund, previously Reliance Mutual Fund, entered the financial landscape in 1995 as part of the Anil Dhirubhai Ambani Group. By 2008, it had become India’s largest mutual fund house based on Assets Under Management (AUM), showcasing its impressive growth trajectory. Then, in 2017, a well-known Japanese life insurance company purchased a sizeable portion of Reliance Mutual Fund; as of 2019, they own roughly 72.86% of the business. Reliance Mutual Fund was then renamed as Nippon India Mutual Fund. 

Kotak Mutual Fund

Founded in 1998 with a mission to cater to investors with varying risk tolerances, Kotak Mahindra Mutual Fund has grown from a small player to a top AMC in India. Their success hinges on a diverse offering of mutual funds across equities, debt, and hybrid categories, including innovative options like fund of funds and ETFs. This commitment to investor choice is further reinforced by their focus on consistent outperformance against benchmarks. 

With Kotak 30, the firm introduced its first equity program to deliver long-term capital appreciation for investors. There are currently over 8.1 million investors in the company. Across all mutual fund categories, the AMC provides a wide range of plans. Its extensive network comprises over 50,000 wholesalers. For the convenience of investors, it launched a mobile application and an internet platform in 2013. 

New AMCs

Due to the mutual fund industry’s rapid growth, new players are joining the market. Some of the new AMCs have been listed below: 

• White Oak Mutual Fund – Focus on long-term value investing.
• Bajaj Finserv Mutual Fund – Focus on new products in both equity and debt markets with the trust of Bajaj Finserv.
• Helios Mutual Fund – Focus on specialised investment activities in equity markets.
• Zerodha – Focus on launching passively managed funds.

Conclusion

The top 5 AMCs significantly impact the rapidly evolving Indian mutual fund market by facilitating economic development. They provide a variety of schemes for a range of asset classes. However, it must be known that the rank of an AMC does not guarantee its performance. Therefore, before making any investing decisions, individuals are urged to consult with their investment advisor.  

Frequently Asked Questions (FAQs)