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Best AMCs to Invest in 2022 in India

Have you ever wondered how mutual funds are maintained on a large scale? It’s through AMC’s or Asset management companies and fund managers who work for these companies. Let us dive deeper.

AMCs are specialized companies that invest clients' money in pooled funds (where thousands of investors have already invested their money) of various asset classes with different categories and purposes. To simplify the meaning of AMC for you, suppose you want to invest in ICICI Prudential Bluechip Fund, so the asset management company for the same will be ICICI Prudential AMC Ltd.

Selecting the best Asset Management Company (AMC) is imperative as it can make or break your investment planning. This article will give you a look into the best AMCs in India and help you gauge all the information you need to know beforehand while choosing the right AMC. The one that will help you accomplish your goals by being competitive and utilizing the best judgment capabilities.

Best AMCs in India 2022

Below are the top AMCs in India and their respective average AUM.

AMC NameAverage AUM (in crores)
Quant Mutual Fund2,106.97
ICICI Prudential Asset Management Company8,742.31
BOI AXA Mutual Fund283.5
Canara Robeco Mutual Fund.2,344.13
PGIM India Mutual Fund4,887.32
Aditya Birla Sun Life Mutual Fund.3,398.3
DSP Mutual Fund207.32
Tata Mutual Fund5,893.77
Kotak Mutual Fund7,235.82
SBI Mutual Fund2,632.9

How do AMCs help you generate returns out of mutual funds?

AMC helps regulate the process of mutual funds and make decisions in favor of investors. With the assistance of fund managers, it invests money as per the scheme objectives by following the process below.

  • Proper Asset Allocation: Mutual funds come with various investment objectives that help fund managers decide on the assets for the investment. For example, most balanced funds have a fair share of AUM as equity and debt securities.
  • Market research and analysis: A well-created portfolio takes a lot of research and analysis of funds for investment. Various micro and macro aspects get assessed before a fund manager makes an investment decision based on the fund's objective.
  • Portfolio Creation: A lot goes on to build a strong investment portfolio, the expertise of the fund manager, the research team to gauge the market situations, etc. AMCs typically keep a team of researchers and analysts who closely watch the market and trends and submit their findings to the fund manager. Based on these data and the fund's objective, the fund manager decides to buy or sell the securities.
  • Review of performance: AMCs keep the unitholders updated with all the information and the impact (positively or negatively) on their mutual fund holdings. It includes regular status on sales and purchases, NAV, and portfolio status, while addressing investors' grievances from time to time. In short, AMC ensures transparency in the process for investors.

How are AMCs different from other financial firms?

There is a slight difference in their approach. While financial firms encourage investors to purchase and sell, the asset management company focuses solely on maintaining and enhancing the clients' investment portfolios. Their approach is quite different from that of investment banks, brokerages, and insurance firms, all of which work on providing access to stocks, insurance policies, etc. Financial firms typically operate with large businesses, whereas AMC with individuals and companies. AMCs have a more free hand in decision-making for growing investors' wealth.

How do investors get benefits from Asset Management Company? 

There are many advantages of working with AMCs that often score over the approach of doing it all on your own. 

  • Saves considerable time: A lot of effort, time, and energy goes into making a mutual fund investment successful. When you choose to do it alone, it can sometimes make you confused and frustrated. By enlisting the Asset management company services, you can take the mantle off your shoulder. An independent advisor will do all the research and analysis on your behalf by utilizing best industry practices and analytic tools and data. So you can reap better returns from your investment without going through any confusion and hassles.
  • Ensures a smooth operation: AMC acts as an intermediary between clients' accountants and attorneys; to get help with regulatory compliance issues for proper asset management. The company makes sure your portfolio is connected and working well with all the essential people and resources so you can achieve the intended goals on time and with ease.
  • Mitigate risk with ease: Mutual funds come with high risk and thus require intuitive judgment abilities to minimize the possibility of financial losses. Asset managers perform a thorough statistical analysis of current market trends and utilize their years of experience for decision-making that is not only smart but made in your best interest.
  • Helps you achieve peace of mind: Working with a trusted AMC means less stress and more gains. AMCs handhold the clients throughout their investment journey, making them more informed and educated on possible opportunities and returns on investment and helping them form better decisions for their financial future. 
  • Make you a confident investor: You can relax knowing that all your financial decisions for your investment portfolio are being made by some of the most experienced industry experts and in your best interest.

How to find the best AMC?

Choosing the right asset management company is essential if you want to achieve your financial goals in the right way and on time. Each company has its working methodology and may lead to significant fluctuations in your portfolio, depending on what company you choose and trust. When you pick an asset management company, it's important to consider some aspects to reach the final decision. 

  • Check their credentials: It's one of the important aspects to understand if the company is legitimate and experienced enough to create a profile for your needs. AMCs have various advisors with different capabilities, which can either make or break your investment. So it is worth investigating how the company caters to your needs and offers services accordingly.
  • Look into the historical returns of AMC: Another thing that needs your consideration is the reputation of the AMC. Check how it has been performing over the years. If a particular AMC has been consistently performing well and gained appreciative feedback, they are likely to perform better for you. Besides, the history of an AMC helps you know how the company will perform on a personal level. Also, check whether the company is regulated as they are likely to invest finances in a better way.
  • Budgeting is Essential: Mutual find management costs can significantly impact your returns from investment. Hence it's imperative to consider the service charges of AMCs. Prices vary from company to company. It's often the larger AMCs that offer affordable prices to clients while ensuring a high level of profitability. However, that does mean smaller companies can't deliver excellent services at affordable prices. But, all things boil down to what services you're looking for from an AMC.

Conclusion 

The right Asset Management Company (AMC) can make your mutual fund investment worthwhile. They can consistently produce superior returns over time without requiring considerable effort from the investors. That being said, it's imperative to know your AMC before you invest your hard-earned money in mutual funds. Make sure to do thorough research about various AMCs, check their track record, past performance, how they have been performing in up and down market situations, etc.

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