What is AMC in Mutual Fund?

The Asset Management Companies (AMCs) are flourishing in India as the retail participation in the country is increasing robustly. The people have faith in India’s growth story, and they are investing in it for the long term. This is mainly happening with mutual funds via the SIP route, and this makes the AMC business in the country quite popular and seems to hold immense prospects. 

The overall Indian mutual fund industry’s asset under management (AUM) grew 7X between 2014 and 2025. From ₹10 lakh crore in 2014 to a whopping ₹75 lakh crore (approx.) as of August 2025.

In this growth, AMCs have played a pivotal role, and today, we will be discussing everything that you need to know about an AMC before you start investing with it. The article will cover all the aspects of AMCs, from the AMC full form to AMC meaning, top AMCs in India, how they work, their structure, and everything else. 

What is an AMC (Asset Management Company)?

To understand an AMC, first, let’s know the AMC full form, which is Asset Management Company. This is a financial institution which are registered with the Securities and Exchange Board of India (SEBI) to manage mutual funds. AMCs pool money from various investors who are investing in mutual funds and then invest those funds into different securities such as stocks, bonds, commodities, and others. 

AMCs are the institutions that build different mutual fund schemes according to the underlying assets, decide the investment objectives for each of them, do market research, and continuously monitor the markets to align the funds accordingly. The AMCs hire fund managers, research analysts, and others to manage these mutual fund schemes in which we invest our money. 

AMCs in mutual funds offer all these services against certain fees, which are usually expressed as the expense ratio of any mutual fund. The fees usually include management fees, operational costs, administrative expenses, and others. 

Know More About : NAV Meaning in Mutual Fund

To understand how an AMC is performing, investors usually check the funds that it offers and how those funds are performing. The performance of the mutual fund schemes decides whether an AMC is delivering optimally or not. However, the performance of funds varies, so while certain funds may perform well for an AMC, others may not. 

So, it is important to check the overall reputation of the AMC before investing in any of its funds, and then, of course, the rest you need to understand is about the fund, its fund manager, expenses, and performance history, and whether it is following ethical and compliance standards set by SEBI or not. 

Key Functions of AMCs

AMCs in mutual funds play a crucial role and have different functions in the industry. Here are the functions that AMCs take care of – 

• It pools money from different investors and accumulates them to form a single investment pool, which is then allocated across various asset classes. 
• AMCs build the investment strategies for different mutual fund schemes they come up with, and their professional fund managers and research associates, and analysts design those schemes, strategies based on investment objectives, investors’ investment goals, risk tolerance, and appetite. 
• They manage the schemes as per market conditions and take care of your investments from making investment decisions to optimizing returns and managing risk quotients. 
• Keep all the investment and market data and insights for investors. They offer historical data of the fund’s performance, risk ratios, and other details. 
• AMCs offer different investor services like systematic investment plan (SIP), lump sum investment option, redemption of funds, and grievance redressal as well. 

How is an AMC setup?

The Government of India set up Unit Trust of India (UTI) back in 1963, which was the first AMC, and then, from 1992 onwards, public sector banks and financial institutions were permitted to set up mutual fund AMCs after the SEBI Act 1992. Now, to understand how AMCs are set up, you need to understand the entire mutual fund industry structure. 

• First, a Sponsor who is the promoter of a mutual fund forms a trust and appoints the board of trustees. 
• These trustees regulate the fund by following AMFI and SEBI rules and regulations. These trustees make sure the investors’ interests are protected. 
• An AMC is set up to manage the funds, that is, from pooling money to invest in securities, developing the investment strategies, etc., and the trustee regulates the fund via the AMC
• Then comes the custodian, who is responsible for holding and keeping the mutual fund units safe.
• Finally, there is RTA, which does all the accounting and administrative work. 

Organizational Structure of an AMC

Now, let’s understand the organizational structure of a mutual fund AMC – 

• There is are Board of Directors at the top who look after the overall governance and make sure the AMC operates in the best interests of the investors. 
• Then comes the CEO and/or the MD who leads the firm, implements the investment strategies, and ensures the AMC complies with the regulatory framework. 
• The CIO manages the investment professionals and supervises the portfolio-related work.
• Then come the fund managers who take care of the funds daily, make the investment decisions as per the scheme’s objectives and market scenarios.
• For compliance and risk management, there is a dedicated team in every AMC to ensure everything is as per SEBI norms.
• Then there is the operations and sales team, who take care of the administrative and marketing, respectively. 

Ready to invest smart? Open your demat account today and explore the best mutual funds instantly.

Regulations AMCs Need to Comply With 

The AMCs in mutual funds need to comply with the following regulations – 

• The AMCs need to have a minimum net worth of ₹50 crore
• They cannot invest in illiquid securities or securities of related parties
• They need to give all the information about the investments to the investors, from the fund’s objectives, to strategy, to performance, fees, other expenses, and risk quotient
• They need to keep their total expense ratio (TER) as per SEBI guidelines. 

How to choose the right AMC for yourself?

The factors that you, as an investor, must see while choosing an AMC in a mutual fund are – 

• Track record of the AMC, which is whether they are offering funds that are performing well 
• There is no compliance-related issue with the AMC
• They are charging TER as per SEBI guidelines
• Offering different types of mutual fund schemes to suit different investors
• Have a dedicated customer support  

Top 10 AMCs in India

Here are the top ten mutual fund AMCs in India as per Average AUM (July-September 2025) – 

AMCs	AAUM (₹)
SBI Mutual Fund	11,99,53,297.96
ICICI Prudential Mutual Fund	10,14,75,811.28
HDFC Mutual Fund	8,81,42,880.70
Nippon India Mutual Fund	6,56,51,868.82
Kotak Mahindra Mutual Fund	5,55,95,213.92
Aditya Birla Sun Life Mutual Fund	4,25,17,127.32
UTI Mutual Fund	3,78,41,328.86
Axis Mutual Fund	3,51,23,788.85
Tata Mutual Fund	2,16,96,075.79
DSP Mutual Fund	2,11,09,674.76

Source: AMFI

Conclusion 

So, if you are interested in investing in mutual funds or already investing in them but want to try other AMCs, then understanding what an AMC is in mutual funds and what AMC means is crucial. Always make sure that the AMC you are selecting complies with SEBI, and check the performance and track record to invest wisely. 

AMCs in Mutual Fund | FAQs

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.