What is an AMC?

Here's an example to explain this: think of an AMC like a restaurant that serves different cuisines. At the restaurant, the menu lists all the dishes available for customers to choose from, and those dishes are cooked by chefs who specialise in a specific cuisine. Similarly, an AMC offers a menu of investment options covering investors’ different risk appetites, ranging across equity funds, debt funds, or hybrid funds. Each fund has a dedicated and specialised fund manager who selects the ingredients (assets like stocks and bonds) and aims to meet the investment objectives of the fund. The goal is to deliver returns through professionally managed mutual fund schemes and enhance the investment experience.

Just as you need to trust the chefs to prepare your food well, you also need to trust those who invest your money.

AMCs are Subject to Regulations

The Securities and Exchange Board of India (SEBI) regulates AMCs in India. SEBI ensures that AMCs operate within a strict regulatory framework, prioritising transparency, investor protection, and ethical conduct.

AMCs are primarily responsible for professionally managing investors’ money and providing investment solutions for long-term wealth creation. AMCs must also manage risks, administrative tasks and provide customer service – all in compliance with regulatory standards.

The AMCs shall manage your money transparently and professionally, giving you peace of mind as you work towards achieving your financial goals.

How to Choose the Right AMC

Here are the factors to consider before choosing an AMC:

• Investment Philosophy While choosing an Asset Management Company (AMC), it is important to consider its investment philosophy. It’s important for the AMC to have a clear, consistent approach that puts the client’s interests first focusing on long-term value, transparency, and responsible investing. This philosophy should guide every decision, from fund design to risk management with an aim to deliver optimal returns.

• Technology & Innovation While fund managers play a key role in driving performance, the AMC’s commitment to innovation and technology is equally important. AMCs that invest in advanced technologies, such as data analytics, artificial intelligence, and real-time monitoring tools, are better equipped to make informed investment decisions, manage risk effectively, and optimise their portfolios.

• Risk Management This ties closely with both technology and the AMC’s investment philosophy. While risk is an inherent aspect of investing, effective risk management strategies significantly influence the outcomes. A tech-enabled AMC has the potential to detect early warning signals, monitor portfolios in real time and take timely action towards better investment decisions.

• Product Offerings Last but not least, explore the AMC’s mutual fund schemes to see if they offer the product you are looking for.

• Bottom Line Choosing the right AMC is akin to finding the perfect chef – you want someone who is skilled, trustworthy, and aligned with your expectations. Do your research, trust the process, and watch your financial recipe become a signature dish.

Mutual Fund investments are subject to market risks, read all the scheme related documents carefully

Disclaimer: The information contained in this document is for general purposes only and not investment advice. Readers may seek professional advice before taking any investment-related decisions.'

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsors, the Investment Manager, the Trustee or any of their directors, employees, affiliates or representatives (“entities & their affiliates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.