Top 10 Mutual Fund Companies in India: How to choose the right ones?
Top 10 Mutual Funds in India: Introduction
Asset management companies (AMC) are financial institutions that pool investment from investors and invest the same across different market instruments to gain higher returns. An asset management company in India handles the fund by identifying the investment in stocks, bonds, debt, etc. The main aim of AMC is to identify the opportunities based on investors' objectives and also aims to optimize the return on investment. If you are looking for the best AMC in India to optimize your returns, this article is for you.
What will we learn?
- What is an asset management company (AMC)?
- How does AMC work?
- Best AMC in India-Top 10 Mutual Funds Companies in India
- Role of SEBI, AMFI in AMC
- How to choose the Best AMC in India
What is an Asset Management Company?
An AMC is a company that manages the funds of the investors. This involves the collection and allocation of the funds in a variety of assets and securities such as stocks, bonds, etc. The AMC appoints professionals to manage the funds and such professionals are called fund managers.
The fund managers are highly qualified professionals who look after the investment decisions of the investors. These fund managers have extensive experience in stock markets and investments and their main aim is to make profitable investments for the investors. Top fund managers in India create portfolios of various risk appetites, tax benefits, time periods, etc. for investors who do not possess much knowledge of investments and stock markets.
How Does an AMC Work?
The asset management company is a component of a mutual fund that is responsible for various activities and operations. Investing in AMC means investing in a fund that is managed by AMC.
SEBI approval is required for the formation of AMC. Investors while selecting the funds for investment prefer the funds that are managed by well-known AMC, therefore it is important to evaluate the market reputation of the AMC.
Here are the necessary steps that an asset management company in India performs:
- Asset allocation: The AMC makes the investment in various equity and debt instruments. The AMC invests in such a way as to keep the investor’s faith intact in the AMC. The time of buying and selling the investments depends on the fund manager who administers the funds of the investor.
- Research: A detailed market analysis is done by the fund manager along with his team to arrive at a conclusion and to make a balanced portfolio. This is the most important decision that is taken by AMC as it takes a lot of time and market research.
- Assessment of performance: The AMCs are responsible to the investors for their investment decisions. Therefore, a periodic assessment of the performance of the fund is done taking into consideration the NAV, asset allocation, etc.
What is AUM?
Asset Under Management (AUM) refers to the total market value of the assets managed on behalf of investors. The AUM keeps changing on the basis of inflow and outflow of funds as well as the daily price movements of the underlying assets.
Top 10 Mutual Funds in India
All AMCs are registered under the Association of Mutual Funds of India (AMFI). Following is the list of Top AMC in India:
| Sr. No. | AMC NAME | AUM (₹ Cr.)
| Number of Funds | Top Performing Mutual Funds 0f Different AMC |
| 1. | SBI Mutual Fund | 647064.29 | 144 |
|
| 2. | ICICI Prudential Mutual Fund | 4,68258.02 | 117 |
|
| 3. | HDFC Mutual Fund | 4,32,084.97 | 61 |
|
| 4. | Nippon India Mutual Fund | 2,83,260.97 | 102 |
|
| 5. | Axis Mutual Fund | 2,60,335.18 | 59 |
|
| 6. | DSP Blackrock Mutual Fund | 1,07,873.94 | 78 |
|
| 7. | Kotak Mutual Fund | 2,84,617.8 | 68 |
|
| 8. | TATA Mutual Fund | 86396.95 | 70 |
|
| 9. | Aditya Birla Sun Life Mutual Fund | 2,95,804.91 | 107 |
|
| 10. | L&T Mutual Fund | 75591.56 | 51 |
|
(Data as of the last quarter, July-September 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
About the Top 10 AMCs in India
SBI Mutual Fund- Top AMC in India
It was introduced in 1987 and was fully owned by SBI, a public sector bank. In 2004 SBI disinvested 37% of its stake. It is one of the oldest and most reputed AMC in India.
ICICI Prudential Mutual Fund
It is one of the best mutual fund companies in India. It was introduced in the year 1993 and since then it has created a strong customer base.
HDFC Asset management company or HDFC Mutual Fund is an actively managed equity mutual fund in India. It is one of the top asset management companies in India. This AMC has shown promising growth by delivering promising services.
It manages assets across managed accounts, mutual funds, offshore investments, alternative investments, etc. It was earlier known as Reliance Asset Management Company, it was later run by a joint partnership with Nippon Life Insurance from Japan.
Axis Mutual Fund
It is one of the leading AMC houses, it offers equity, debt, and hybrid models for investment. It is one of the top mutual fund companies in India.
DSP Blackrock Mutual Fund
It is one of the largest investment management companies, it provides a variety of options for investment right from equity to hybrid.
Kotak Mutual Fund
It started its operations long back and since then has developed a large customer base. This AMC offers diverse requirements to investors.
TATA Mutual Fund
It's a part of TATA’s group that manages the TATA mutual fund. It was launched in 1994 with diverse investment options based on investor'sq1 financial objectives.
Aditya Birla Sun Life Mutual Fund
It is a joint venture with an Indian Company i.e. Aditya Birla Capital Ltd. and Canada-based financial service firm Sun Life AMC.
L&T Mutual Fund
It was launched in 1997, and since then delivering long-term risk-adjusted performance. The investors have a wide variety to choose from equity to hybrid to ELSS.
Role of SEBI and AMFI in AMC
The regulatory authorities also have a major role to play in AMC. An AMC works under the supervision of the board of trustees and these trustees are regulated by SEBI. SEBI always works in the interest of investors and makes sure all the guidelines and regulations are followed by the AMC.
The Association of Mutual Funds in India (AMFI) is a statutory body that addresses grievances and looks after the interest of investors. The main objective of AMFI is to ensure the development of the mutual fund industry.
Guidelines For An Investor
- An AMC shall serve as trustee of any Mutual Fund
- The person should have a clean track record
- AMC must provide reports of its activities to investors from time to time.
- The chairman of AMC should not be a trustee
- The company can invest only when there are full disclosures of the intention to invest.
How to Choose the best AMC in India?
The following should be considered by the investors before choosing the AMC:
Reputation of AMC
It takes a long time to create the reputation of a company. A company’s consistent performance and clean track record go into building the goodwill of the company. An investor researches the company before investing in it making it all the more necessary to maintain a robust reputation.
Qualifications of fund manager
He is the person who is responsible for making investments on behalf of the investor. An investor wants the fund manager to be highly qualified and professional with a vast experience in the stock market and personal finance so that the funds of the investor are best utilized and maximum profits are earned.
Final Words
AMCs give investors a variety of investment options, such companies are the money managers. It is important for the investors to study in detail before investing in any Mutual Fund. As the AMC is run by fund managers, the investors must choose top fund managers in India of the best mutual fund companies in India who may set the investment objective, evaluate the market risk and then plan for investment strategy. Make sure you make the right decision in choosing the best AMC. To compare the AMCs and keep yourself updated on Mutual Funds follow INDmoney.
What does AMC do?
It is a company that invests in the pooled funds of the investors. The funds are further invested in different asset classes.
How does AMC make money?
Such companies make money by asset management fees charged by AMC from the investors for investing their money.
Who appoints AMC?
An AMC is appointed by the sponsor or Trustee to manage the funds. AMC works under the supervision of trustees who are governed by SEBI and AMFI.
Who regulates AMC?
AMC is regulated by SEBI and by the Association of Mutual Funds of India (AMFI).
What is the role of AMC in Mutual Funds?
AMC looks for the operation, administrative and managerial functions, the AMCs brand name depends on the mutual fund schemes under its banner.