Asset management company

An asset management company or AMC is a company which professionally invests money, either pooled from many investors, of a family or of an individual, in different asset classes. It makes the investment process more systematic.

Example

Motilal Oswal, HDFC Securities etc are some AMCs in India.

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An AMC’s clients could include high-net worth individuals, hedge funds, pension funds, and retail investors (for products like MFs, index funds, ETFs). In case of MFs and ETFs, we also call the AMC as the fund house.

AMC helps in Asset class diversification. Investment through an AMC helps to save time, get expert advice, decrease risk and increase returns. AMC hires talent which analyses the consistency and amount of returns from various assets and the future performance of assets. For ex:- Analysis of the performance of a stock through technical and fundamental analysis