Mutual Fund vs Asset Management Company (AMC)
A Mutual Fund company is also known as an Asset Management Company (AMC) that collects funds from so many individual investors to invest in diversified portfolios containing equities, shares, debts, and securities. In Equity PMS, an investor recruits a personal portfolio manager for managing all his investments. This is not possible for the middle class and lower-middle-class investors. An Asset Management creates an opportunity for investing in securities like stocks, bonds, debts for the investors irrespective of financial status. They create a Mutual Fund of a diverse portfolio by investing in large and small-cap equities as well as debts and other securities. The skilled fund manager organizes a common financial investment portfolio on the basis of present market conditions. Then money is pulled from individual investors and it is invested against that portfolio. As Mutual Fund companies do all the things under the supervision of skilled professionals, you possess a high chance of a handsome return. You can be a part of this goal-based investments just through investing online.
An Asset Management Company recruits highly qualified professionals for the perfect allocation of investments. They organize the funds thinking of return prospects and risk factors. An equity-oriented mutual fund gives priority to return and it invests more than 60% of its wealth in equity shares of different companies. A debt oriented mutual fund gives priority to safety, it invests the major portion of wealth in debt securities of government, municipal corporations, and corporates for a systematic return. At first, an AMC creates a portfolio considering the risk and return factors, then it pulls up the funds from the investors and invests in the market. An AMC offers so many schemes for the investors according to the financial goal of an investor. You have to read carefully the details of all the schemes before investing.
Mutual Fund companies need to abide by specific norms of the Reserve Bank of India (RBI), and the Security and Exchange Board of India (SEBI) for running their business. On the basis of their company profile, wealth management scheme, capitals, past records, and other factors, SEBI provides registration to the AMCs for running schemes with Mutual Funds. Before investing online in a Mutual Fund, an investor needs to investigate the profile of the AMC, its past record of return over the past few years, and the flexibility of the schemes. The SEBI registered Mutual Fund Companies* (as of October 20, 2020) are:
- Axis Mutual Fund
- Baroda Pioneer Mutual Fund
- Birla Sun Life Mutual Fund
- BNP Paribas Mutual Fund
- BOI Axa Mutual Fund
- Canara Robeco Mutual Fund
- CRB Mutual Fund – Suspended
- DHFL Pramerica Mutual Fund
- DSP Blackrock Mutual Fund
- Edelweiss Mutual Fund
- ESSEL Mutual Fund
- Franklin Templeton Mutual Fund
- HDFC Mutual Fund
- HSBC Mutual Fund
- ICICI Prudential Mutual Fund
- IDBI Mutual Fund
- IDFC Mutual Fund
- IIFCL Mutual Fund (IDF)
- IIFL Mutual Fund
- IL&FS Mutual Fund (IDF)
- Indiabulls Mutual Fund
- Invesco Mutual Fund
- ITI Mutual Fund
- JM Financial Mutual Fund
- Kotak Mahindra Mutual Fund
- L&T Mutual Fund
- LIC Mutual Fund
- Mahindra Mutual Fund
- Mirae Asset Mutual Fund
- Motilal Oswal Mutual Fund
- Nippon India Mutual Fund
- PPFAS Mutual Fund
- Principal Mutual Fund
- Quant Mutual Fund
- Quantum Mutual Fund
- Sahara Mutual Fund
- SBI Mutual Fund
- Shriram Mutual Fund
- SREI Mutual Fund
- Sundaram Mutual Fund
- TATA Mutual Fund
- Taurus Mutual Fund
- Trust Mutual Fund
- Union Mutual Fund
- UTI Mutual Fund
- Yes Mutual Fund
The Association of Mutual Funds in India (AMFI), a non-profit organization promotes mutual funds based financial investments in India. 44 of the SEBI registered Asset Management Companies (AMCs) are its members. Consult with an AMFI registered mutual fund distributor for getting more details about the mutual funds’ schemes and investment guidelines.
*Source: The official website of Securities and Exchange Board of India (SEBI)
