{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/investment\/what-is-amc-in-mutual-funds\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/investment\/what-is-amc-in-mutual-funds\/","headline":"What is AMC in Mutual Funds?","name":"What is AMC in Mutual Funds?","description":"If you want to grow your wealth, mutual fund investments are a great option. However, before you invest, you must understand the entities that manage these funds. This is where an AMC (Full Form: Asset Management Company) comes into the picture.  An AMC is a professional entity responsible for managing investments in mutual funds. It...","datePublished":"2025-01-28","dateModified":"2025-01-28","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/#Person","name":"CONVONIX Antony","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind_bank_pfx_team_indperformics-com\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7d15b864167d3868c12ffdda340cc1c9?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/What-is-AMC-in-Mutual-Funds-min.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/What-is-AMC-in-Mutual-Funds-min.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/investment\/what-is-amc-in-mutual-funds\/","about":["Investment"],"wordCount":1341,"articleBody":"If you want to grow your wealth, mutual fund investments are a great option. However, before you invest, you must understand the entities that manage these funds. This is where an AMC (Full Form: Asset Management Company) comes into the picture. An AMC is a professional entity responsible for managing investments in mutual funds. It ensures that investors\u2019 money is allocated and managed in the right manner to achieve the stated objectives of the fund. Let\u2019s learn more about what is an AMC in mutual funds and its role in your investment journey. What is an AMC in Mutual Funds?First, let\u2019s understand the meaning of an AMC in detail:An AMC is a financial institution that collects money from investors and pools it together. It then invests it in various financial instruments, such as stocks, bonds, and other securities, as per the objective of the specific mutual fund. An AMC will have various professionals called fund managers, who are responsible for managing each fund. They use their expertise to maximise returns in a mutual fund while minimising the risk aspect. AMCs charge a fee, known as the expense ratio, to its mutual fund investors. This fee helps them cover operational costs like management, marketing, and administrative services.  In India, Asset Management Companies (AMCs) work under the supervision of a board of trustees and follow the rules set by two key regulators:The Securities and Exchange Board of India (SEBI)The Association of Mutual Funds in India (AMFI)How Does an AMC Manage Mutual Funds?Now that you know the full form and meaning of AMC in mutual funds, let\u2019s look at how it works:1. Pool Investor FundsPrimarily, AMCs collect money from multiple investors who have a shared financial goal. This allows the AMC access to a larger investment corpus, which means they can access opportunities that individual investors might not have access to.  2. Create and Manage FundsEach AMC offers a variety of mutual funds, such as equity, debt, hybrid, and sectoral funds. These funds cater to diverse investment needs, from wealth creation to income generation.  3. Hire Expert Fund ManagersAs the full form of AMC suggests, it is a company that manages assets. For this purpose, it will hire skilled fund managers whose job is to study market trends and evaluate risks. Based on their evaluation, they will make investment decisions to maximise returns for each fund. Fund managers also track the fund\u2019s performance to ensure it is meeting its stated goals.4. Allocate InvestmentsThe AMC will allocate funds across various asset classes or sectors (or other categories). For example, equity funds focus on stocks, while debt funds invest in bonds and other fixed-income securities. The funds will perform as per market conditions and other parameters. 5. Report Performance to InvestorsAnother important role of an AMC in mutual funds is that provide regular updates to investors on fund performance. They do this through fact sheets, annual reports, and other disclosures. This helps investors track the growth of their investments. How to Choose an AMC?India has a large number and a wide variety of AMCs. How should you choose the right one for your portfolio? Here are some factors to keep in mind:  1. Reputation and Track RecordFirst, you must research the AMC. Review its history, credibility, and the past performance of its mutual funds. It is ideal to choose AMCs that show consistent results even in different market conditions.2. Fund Manager Expertise A mutual fund\u2019s factsheet will have the name of its fund manager. Check the credibility and experience of the fund manager before going ahead with a scheme. 3. Expense Ratio (and Other Fees)Compare the expense ratios of funds offered by different AMCs. A lower expense ratio means you have more funds being invested.   4. Digital ToolsIf the AMC offers digital tools, such as a user-friendly app, it can help you track your portfolio and manage investments with ease. Also Read: How To Buy Mutual Funds Online & What to Consider before the Purchase?ConclusionChoosing the right AMC is an important part of your investment journey. The right AMC can help you and your money adapt to changing markets and provide the expertise you need to grow your wealth. As an investor, evaluating an AMC before investing ensures that your investments are in capable hands.IndusInd Bank offers a range of mutual fund scheme types from the top AMCs in the country. So, whether you are a risk-averse investor or want to invest in high-risk funds, the wide variety of offerings at IndusInd Bank ensures you have the right resources you need to grow your wealth. We offer enhanced security, comprehensive portfolio tracking, a transparent fee structure, and one-click investments.So, invest and start growing your wealth today! Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.Share This:"}