Finance system helps in trade, transaction as well as helping with promotion of business investment. The role of asset management company is quite important in the financial services industry. An asset management company manages funds for individuals and companies. They make well timed investment decision on behalf of their clients to grow their finances and portfolio.
Asset Management Companies are basically financial institutions which manage the investment of both clients and the company. It offers a large range of products with different investment goals and levels of regulation, which are designed for different kinds of investors. They handle their investment, according to the internally mandated investment procedures. An Asset management company pools fund, which can be channelled into property, shares, bonds or other assets depending on the financial objectives of their different clients.
Despite being the part of the financial industry, it does have fundamental difference while compared to other financial services such as investment banking or retail banking. The operating model of the asset management separates management companies from the asset, ensuring that assets are supervised and held independently via depositories and custodians. An Asset Management company offers investors with different mutual fund scheme to invest. They then invest the money received from investors by investing in different asset classes. Let’s look at the India’s top asset management companies, according to the economic times:
- HDFC Mutual Fund
HDFC is one of India’s leading providers of financial services. It was launched in 1999 and among top AMC’s of the country. The overall Asset under management under the company is 342524.71
- ICICI Prudential Mutual Fund:
It is the second largest AMC of the country. It’s a joint venture of ICICI bank of India and Prudential PLC of UK. The AMC has an asset under management of Rs 321281.17cr and offer more than 1400 funds.
- SBI Mutual Fund:
SBI Mutual Fund is India oldest asset management company. It’s mainly a joint venture of the State Bank of India and Amundi, a European asset management company. The AMC has an asset under management of Rs 284123.64 cr.
- Birla Sun Life Mutual Fund:
Birla Sun Life Mutual Fund is a joint venture of Aditya Birla Group of India and Sun Life Financial Inc. It offers diverse mutual fund schemes specialize in sector specific schemes like tax planning, personal savings and wealth creation.
- Reliance Mutual fund.
Reliance Mutual Fund is a joint venture of Nippon life insurance and Reliance Capital. It provides more than 200 schemes to choose from. The asset under management under the Reliance Mutual fund is Rs 234292 cr.
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
