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Top 5 AMCs in India

Having someone who can manage your wealth can be a boon. But good advice and good management come at a cost, both of which may not be easily accessible to many. While that was the case a few decades ago, the world of investing in India has changed.  

With the advent of mutual funds courtesy of AMCs, everyday investors now have access to professionally managed funds at a relatively low cost. In this blog, we will help you find out the top 5 AMCs in India! But first, let’s talk about the meaning of AMC.

What is an Asset Management Company?

Professionally managed funds became a thing in India back in 1963. UTI was the first AMC, the full form of which is Asset Management Company. An AMC collects capital and invests it in different types of assets like shares, bonds, and other funds depending on the objective.

AMCs are responsible for managing the funds collected from different investors. The reasons for investors’ trust in AMC are various factors such as its scalability, chances of diversification, and multiple other services they can receive.

Asset Management Company or AMC offers different investing opinions, such as Exchange Traded Funds (ETFs), Index Funds, Mutual Funds, etc., in exchange for management fees. This fee is usually a certain percentage of the total assets under management (AUM). 

The best asset management companies always have a significantly experienced fund manager who manages and effectively directs the investment pool. Moreover, the fund manager and team are responsible for setting financial goals for the fund by analyzing the associated rewards and risks.

Top 5 AMCs in India

From helping you invest to ensuring that the fund you buy is diversified, the best mutual fund companies manage it all.  Now that you know what is an asset management company for online investing, here are the top 5 biggest AMCs that you can consult and invest with.

1. SBI Mutual Fund

  • AUM as of June 2022: ₹6,47,474 crores
  • Popular Funds: SBI Bluechip Fund, SBI Focused Equity Fund, SBI Equity Hybrid Fund

Incorporated on February 7, 1992, SBI Mutual Fund is one of the top 5 AMCs in India. Initially, the company was owned by the State Bank of India. In 2004, it disinvested its 37% stake in mutual funds.

Today, it holds 146 funds and approximately ₹6,47,474 Cr. of assets under management. It has been 30 years, and it is one of the most reputed asset management companies in the country.

2. ICICI Prudential Mutual Fund

  • AUM as of June 2022: ₹4,65,484 crores
  • Popular Funds: ICICI Silver ETF, ICICI Bluechip Fund, ICICI ETF Fund of Fund

ICICI Prudential Mutual Fund is a leading AMCs in India. It was established in 1993 and had six employees at 2 locations. Today, the company’s strength has increased to over 1,000 employees, and it has branched to 120 locations. 

Currently, it maintains a strong customer base and provides product solutions to all its investors, making it one of the best asset management companies. The mutual fund company offers several fund schemes, including debt, hybrid, equity, ELSS, liquid, and more. 

3. Axis Mutual Fund

  • AUM as of June 2022: ₹2,45,509 crores
  • Popular Funds: Axis Bluechip Fund, Axis Focused 25 Fund, Axis Long-Term Equity Fund

Axis Mutual Fund was established in 2009 and is one of the leading mutual fund houses today. Marked as one of the key members of the financial market, the company is a joint venture between Schroder Singapore Holdings Pvt. Ltd. and Axis Bank. 

Currently, it provides around 76 schemes spread through different categories and includes 101 debt funds, 35 hybrid funds, and 30 equities.

4. Tata Mutual Fund

  • AUM as of June 2022: ₹88,367 crores
  • Popular Funds: India Tax Saving Fund, Balanced Advantage Fund, and Infrastructure Fund

The Tata Group established the Tata Mutual Fund in 1994. The company provides multiple investment options to individual investors, depending on their income, financial goals, and risk appetite.

 Over these last 18 years, the company has earned its investors’ trust and helped them gain returns. Today it holds ₹88,367 Cr. of assets under management and has around 47 funds.

5. Aditya Birla Sun Life Mutual Fund

  • AUM as of June 2022: ₹2,81,527 crores
  • Popular Funds: Aditya Birla Arbitrage Fund, Aditya Birla Focused Equity Fund, and Aditya Birla Frontline Equity Fund Trigger Facility

This is a joint venture between Sun Life Financial Ltd. and Aditya Birla Group. The company is well-known for its consistent performance over the years. 

Any individual investor who is looking to increase his wealth can always look at different financial schemes offered by the Aditya Birla Sun Life Mutual Fund. These schemes include equities, hybrids, equities, debts, liquid funds, and more.

Benefits of an Asset Management Company

Refer to the below advantages for choosing the best AMCs or best mutual fund companies for your investments. 

1. Access to Multiple Assets

An asset management company invests in several assets simultaneously, which isn’t the case with a single investor. It gives you the flexibility to invest in funds that can improve profits in the long run.

2. Specialized Expertise

As an independent investor, you may not have as much expertise as an expert in the field. The best asset management companies hire professional experts who have experience in handling large funds. 

Thanks to their expertise, your funds stay secure, and the risk is minimized. That’s why it is better to join hands with an asset management company.

3. Stress-free Investment

You can invest in asset management companies as all you have to do is pay the amount, and the experts will handle the rest. It allows you to be in complete control of your funds without any stress.

Conclusion

That was the list of the top 5 leading AMCs based on AUM. These funds have a historical track record of giving investors access to a wide range of funds that are designed to achieve short, medium, and long-term goals. 

An AMC will manage your funds while trying to manage risk and generate returns. But before you start investing, it is important to have all the information about the asset management companies of India and make the right choice.

If you prefer investing in SIPs rather than going for a variety of asset classes, you can also check out Dhan’s SIP calculator to know your return potential. Lastly, ensure you take your time in deciding which pathway of investment to choose carefully!

Shraddha Joshi

A little bit of everything. Personal finance enthusiast🙂

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