What is a Mutual Fund AMC?

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What is a Mutual Fund AMC?

An asset management company (AMC) is a firm that invests pooled funds from clients, putting the capital to work through different investments including stocks, bonds, real estate, master limited partnerships, and more. Such businesses include Vanguard Group, Fidelity Investments, T. Rowe Price, and many others.

How does a mutual fund house work?

Mutual funds pool money from multiple retail investors. Retail investors receive a share in the form of units. The fund managers, using their expertise, then invests in stocks and bonds on behalf of the investors. Once the fund earns returns, it is distributed to the investors in the proportion of their investment.

What is the difference between AMC and mutual fund?

An AMC works under the supervision of the board of trustees. But, they are answerable to India’s capital market regulator, the Securities and Exchange Board of India (SEBI). While SEBI is a government body, mutual fund companies have formed the AMFI.

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Are mutual fund houses safe?

If you’re concerned that mutual funds are a type of dodgy investment, rest assured that they’re completely safe. No mutual fund house can steal your money because it is regulated and supervised by the SEBI (i.e. Securities and Exchange Board of India) and the AMFI (Association of Mutual Funds in India).

How does AMC choose mutual funds?

Factors for Selecting a Mutual Fund Category

  1. 1) Investment Objective.
  2. 2) Time Horizon.
  3. 3) Risk tolerance.
  4. 1) Performance Against Benchmark.
  5. 2) Performance Against Category.
  6. 3) Consistency of Performance.
  7. 4) Fund Manager’s Experience.
  8. 5) AMC Track Record.

Which mutual fund house is best?

Best Mutual Fund Companies in India

  • SBI Mutual Fund.
  • HDFC Mutual Fund.
  • ICICI Prudential Mutual Fund.
  • Reliance Mutual Fund.
  • Aditya Birla Sun Life Mutual Fund.
  • DSP BlackRock Mutual Fund.
  • Franklin Templeton Mutual Fund.
  • Kotak Mutual Fund.

Do mutual funds really make money?

15 per cent schemes returned over 15 per cent and 37 per cent schemes gave over 12 per cent. Reliance Multi Cap Fund delivered the highest CAGR returns of 20.53 per cent, followed by Invesco India Multicap Fund (18.93 per cent) and IDFC Multi Cap Fund (18.67 per cent).

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How do I invest in AMC mutual funds?

You may invest in mutual funds directly with the mutual fund house by visiting the branch of the AMC. You just have to fill up the application form and submit the self-attested identity and address proof for KYC compliance. You may submit the cheque for the initial amount and you are allotted a PIN and folio number.