An Asset Management Company (AMC) invests on behalf of its customers, including individuals and entities. Essentially, AMCs pool funds from investors to invest in diverse assets such as bonds, equities, and real estate. AMCs employ qualified fund managers who pick investments to optimize investor returns. AMC, also known as a fund management company, provides investors access to diverse investment opportunities and seeks to deliver higher returns than what individual investors can. In this blog post, we will discuss some of the best AMCs in India, focusing on their mutual fund business. For perspective, the Indian mutual fund industry’s Average Assets Under Management (AAUM) stood at ₹61.33 lakh crore (₹61.33 trillion) in June 2024. SBI Funds Management is the largest AMC in India with an AUM (Assets Under Management) of Rs. 913,780.06 crores, as of March 2024.
Meaning of AMC (Asset Management Company)
As mentioned above, an asset management company (AMC) is an institution that undertakes investing on behalf of its clients. They invest in equities, bonds, property, private equity, and other assets. To better assist small investors, AMCs also oversee mutual funds and hedge funds through the use of centralized portfolio management.
AMCs typically offer investors customized portfolios and different asset types. AMCs conduct research, analyze data, and make decisions about the day-to-day management of investment portfolios. Besides, they ensure compliance with the set legal standards and provide investors with regular investment performance reports. Robust investment strategies, seasoned fund managers, and a proven track record of providing clients with steady returns are characteristics of a top AMC in India.
AMCs charge management fees from their customers in return for managing their assets. The fee charged is used to pay for the expenses incurred to manage funds.
Meaning of AUM (Assets Under Management)
Assets under management (AUM) of a mutual fund is the total value of all stocks, bonds and other assets that the fund is responsible for managing on behalf of its clients. In mutual fund investments, many participants pool their money together to invest it in various assets under the control of professional fund managers. These assets are market-based and their prices change from time to time, thus impacting the mutual fund AUM.
It is also employed in the computation of mutual fund cost ratios. AUM is important to the financial sector since it has an immediate impact on how much money a fund management company would make. AUM is typically used to determine management fees, therefore larger AUM results in higher fees and, ultimately, more income for the business. Large AUM fund management firms might draw in more investors since they are perceived to be steady businesses.
List of top asset management companies in India in 2024
Here’s a list of the largest AMCs in India in 2024, ranked on the basis of assets under management (AUM).
| AMC | Managed Assets as of March 2024 |
| SBI Funds Management | ₹913,780.06 crores |
| ICICI Prudential Asset Management Company | ₹7,20,000 crores |
| HDFC Asset Management Co. Ltd. | ₹614,665.43 crores |
| Nippon Life India Asset Management | ₹438,276.85 crores |
| Kotak Mahindra Asset Management Co. Ltd. | ₹3.81 lakh crores |
| Aditya Birla Sunlife Asset Management | ₹315,777.58 crores |
| UTI Asset Management Company | ₹286,593.27 crores |
| Axis Asset Management Company | ₹266,826.23 crores |
| Mirae Asset Global Investments (India Pvt Ltd) | ₹1,73,787 crores |
| DSP Asset Management Company Ltd. | ₹138,986.33 crore |
New entrants in the AMC world in India
In the past few years, there has been a significant increase in the number of new players that have entered the Indian AMC industry. The development points to increasing investor demand for investment products and the rapid investor shift from traditional investments such as bank deposits and gold. To cater to different investor types, new AMCs are introducing new strategies and unique investment products.
In a bid to attract investors, these businesses are making use of technology, big data, and customized portfolio investment. To gain an edge over entrenched AMCs, the new entrants are offering specialized funds and sector-specific products. Conversely, the entry of new AMCs has led to intense competition, forcing existing enterprises to improve their offerings and enhance customer service.
The new AMCs are getting investor attention as they strive hard to be counted among the top AMCs in India. In short, the growing AMC industry highlights the robustness and promise of the Indian asset management sector.
Overview of the top 10 AMCs in India
Here’s an overview of the top 10 AMCs in India.
1. SBI Funds Management
SBI Funds Management manages SBI Mutual Fund, a joint venture between the State Bank of India and Amundi, one of the largest financial institutions in France. SBI Mutual Fund was established on February 7, 1992. SBI divested 37% of the fund in July 2004 and brought Amundi on board as a partner. SBI Mutual Fund acquired Daiwa Mutual Fund in 2013 from Daiwa Group of Japan.
2. ICICI Prudential Asset Managment
ICICI Bank partnered with Prudential Plc to launch ICICI Prudential Mutual Fund in 1998. ICICI Prudential Asset Management is ranked among the top AMCs in India. The AMC provides exchange-traded funds (ETFs), solution-based offerings, and mutual fund solutions that are subdivided into debt, equity and hybrid funds.
3. HDFC Asset Management Company
The HDFC AMC, one of the largest AMCs in India, was launched in the year 2000. The fund house has a reputation for delivering steady investment returns. Apart from ETFs and FOFs, it has a good number of mutual fund schemes in debt, equity, and hybrid categories.
4. Nippon Life India Asset Management
Nippon Life India Asset Management, which manages Nippon India Mutual Fund, formerly Reliance Mutual Fund, counts among the top AMCs in India. The fund oversees investments in debt, equity, pension funds, and alternative investments. Originally called Reliance Mutual Fund, it became a joint venture between Reliance Capital and Nippon Life Insurance of Japan.
5. Kotak Mahindra Asset Management
Kotak Mahindra Asset Management manages Kotak Mahindra Mutual Fund, which was set up in 1998 to provide mutual funds to suit varying investor preferences. It has a vast category of mutual fund schemes including equity funds, debt funds, hybrid funds, fund-of-fund schemes, and exchange-traded funds.
6. UTI Asset Management Company
UTI AMC has been in the business since 1964 and ranks among the leading Indian asset management companies. The fund house manages the portfolios of domestic and offshore funds and offers discretionary, non-discretionary, and advisory services to high-networth clients, corporates, and institutions.
7. Aditya Birla Sun Life Asset Management
Aditya Birla Sun Life Asset Management manages Aditya Birla Sun Life Mutual Fund. Sun Life Mutual Fund was formed in 1994 as a joint venture between the Aditya Birla Group and Sun Life Financial Inc. of Canada. It has now emerged as one of the biggest AMCs in India. The fund house has a sizable menu of fund of funds schemes, offshore funds and mutual fund schemes in equities, debt, and balanced funds.
8. Axis Asset Management Company
Axis Mutual Fund has grown a lot after its inception in October 2009 and the company boasts of having a product portfolio of about 67 schemes. One of the largest AMCs in India, Axis Mutual Fund Asset Management Company is present in more than one hundred locations and has over 1.26 crore investor accounts.
9. Mirae Asset Global Investments (India Pvt. Ltd.)
Mirae Asset Mutual Fund comes from the South Korea-headquartered Mirae Asset Financial Group. Established in 2007, Mirae Asset Investment Managers (India) Pvt. Ltd. manages the Mirae Asset Mutual Fund in India. The goal of the Mirae Asset Mutual Fund is to provide steady, long-term performance through active fund management.
10. DSP Asset Management Company
DSP Asset Management Company, which manages the DSP Mutual Fund, is a top fund management company in India. DSP Mutual Fund is backed by the DSP Group, a storied Indian financial group. The DSP family established the investment banking entity DSP Merrill Lynch Limited in 1996.
Conclusion
Selecting the best asset management firm in India is important for profitable investments. AMCs ensure that assets are positioned properly to minimize risks and maximize profits. Investors would gain from well-researched, diversified portfolios that help them achieve their financial goals. Investors would do well to choose a fund management company that fits their unique needs and goals.
