About Asset Management Companies (AMCs):
- It is a firm that invests the funds pooled from individual investors in securities with the objective of optimal return for investors in exchange for a fee.
- AMC maintains the diversity of portfolio by investing in both high-risk and low-risk securities such as stock, debt, real- estate, shares, bonds, pension funds, etc.
- Because they have a larger pool of resources than the individual investor could access on their own, AMCs provide investors with more diversification and investing options.
- AMCs are colloquially referred to as money managers or money management firms.
- Those that offer public mutual funds or ETFs are also known as investment companies or mutual fund companies.
- SEBI is the Indian Capital Market Regulator which governs and controls every AMC in India.
