Have you ever wondered how some people seem to have a knack for picking the best mutual funds in the market? How do they know which fund house to trust, which fund manager to follow, and which fund scheme to invest in? Do they have some secret formula or insider information that you don’t?
Well, the truth is, there is no one-size-fits-all solution when it comes to mutual funds investment. However, there is one factor that can make a big difference in your investment decisions: the asset management company (AMC) that manages the fund.
An AMC is a firm that invests pooled funds from clients into various assets such as bonds, stocks, real estate, etc. There are many AMCs in India that offer different types of mutual funds for various investment objectives and risk profiles. But how do you choose the best AMC for your investment needs? How do you compare and evaluate the performance and reputation of different AMCs? And how do you find out which are the top AMCs in India?
That’s what this blog post is all about. In this blog post, we have created a list of the top 10 Asset Management Companies (AMCs) in India based on their AUM and performance as per the data released by AMFI India for July-Sep 2023.
What is an AMC?
An AMC (asset management company) is an organisation that invests pooled funds from clients into various assets such as stocks, bonds, real estate, etc. The AMC charges a fee for managing the funds and aims to generate returns for the investors. AMCs are also known as fund houses, money managers, or investment companies. There are many AMCs in India that offer different types of mutual funds for various investment objectives and risk profiles.
Investment Management Companies
Investment management companies are firms that offer professional services to help investors achieve their financial goals. They can manage various types of assets, such as stocks, bonds, mutual funds, ETFs, and alternative investments. Wealth management companies in India are a subset of investment management companies that cater to the specific needs of high-net-worth individuals (HNIs), families, and corporates. They provide holistic solutions for wealth creation, preservation, and transfer, as well as tax planning, estate planning, and lifestyle advisory.
What is AUM?
AUM- assets under management, is defined as the total market value of all the assets that an AMC or a mutual fund manages on behalf of its investors. AUM reflects the size and scale of the fund and can be used as a measure of its success in attracting and retaining investors. AUM also impacts the fund’s performance, investment decisions, and expense ratio. AUM can change daily due to market fluctuations and fund inflows and outflows. Companies are usually ranked on the basis of their AUM to compare their size and performance in the industry.
However, AUM is not the only factor to consider when evaluating a company, as other aspects such as returns, fees, risk, and reputation are also important.
In November 2023, the Average Assets Under Management (AAUM) of the Indian Mutual Fund Industry were ₹48,74,813 crore. The total Assets Under Management (AUM) as of November 30, 2023, reached ₹49,04,992 crore.
Over the past decade, the AUM of the Indian Mutual Fund Industry has experienced remarkable growth, increasing from ₹8.90 trillion in November 2013 to ₹49.05 trillion in November 2023, marking a more than fivefold increase in 10 years.
How are companies ranked on the basis of AUM?
Companies are usually ranked on the basis of their AUM to compare their size and performance in the industry. A higher AUM generally indicates that a company is well-established and has the resources to make larger investments. However, AUM is not the only factor to consider when evaluating a company, as other aspects such as returns, fees, risk, and reputation are also important.
Top Asset Management Companies in India on the Basis of Average AUM
| Asset Management Companies | Average AUM July – September 2023 (Rs in Lakhs) |
| SBI Mutual Fund | ₹8,26,93,365 |
| ICICI Prudential Mutual Fund | ₹5,81,56,643 |
| HDFC Mutual Fund | ₹5,24,73,957 |
| Nippon India Mutual Fund | ₹3,50,56,442 |
| Kotak Mahindra Mutual Fund | ₹3,33,68,697 |
| Aditya Birla Sun Life Mutual Fund | ₹3,10,89,907 |
| UTI Mutual Fund | ₹2,66,81,324 |
| Axis Mutual Fund | ₹2,59,79,459 |
| Mirae Asset Mutual Fund | ₹1,38,91,783 |
| Tata Mutual Fund | ₹1,27,59,770 |
As per the data released by amfiindia.com as of Sep 30th, 2023.
Overview of the Top AMC- Asset Management Companies in India
SBI Mutual Fund
With a wealth of 36 years of experience in fund management, SBI Funds Management Ltd. (SBIFML), showcases proficiency by consistently delivering value to our investors. Its proud heritage connects us to the State Bank of India (SBI), the largest bank in India. SBI Mutual Fund is the top AMC in India and stands as a collaborative effort between State Bank of India, and Amundi, a prominent European asset management company.
In pursuit of its goals, this asset management company has crafted innovative, tailored products and provided education to investors on the additional advantages of participating in capital markets through Mutual Funds. Its active management extends beyond domestic mutual funds to encompass offshore funds, Alternate Investment Funds, and portfolio management advisory services for institutional investors, ranking as the top AMC in India.
ICICI Prudential Mutual Fund
ICICI Prudential Mutual Fund seconds the list of top 10 asset management companies in India, with over 25 years of experience and over 92 lakh investors.
It offers a multiple investment solutions across various asset classes, such as equity, debt, hybrid, solution-oriented, and others. It aims to create long-term wealth for investors through a customer-centric approach and a strong research team. It has over 120 mutual fund schemes, catering to different goals and risk appetites of investors. Some of its popular schemes are ICICI Prudential Balanced Advantage Fund, ICICI Prudential Bluechip Fund, ICICI Prudential Value Discovery Fund, and ICICI Prudential Corporate Bond Fund.
HDFC Mutual Fund
HDFC Mutual Fund, a subsidiary of HDFC Ltd (India’s leading housing finance company) and Standard Life Investments (a global investment company), has been ranked third asset management company in India as per the latest AMFI India data.
In 2001, a joint venture was formed between HDFC Limited and Investment Management Limited (formerly known as Standard Life Investments Limited).
With a network across 200 cities, HDFC AMC operates through 228 branches and serves customers across approximately 99% of PIN codes in India.
Nippon India Mutual Fund
Nippon India Mutual Fund (NIMF), ranked fourth on the list of top 10 asset management companies in India, is one of India’s leading mutual funds, managing Average Assets Under Management (AAUM) of Rs 3,50,564 Crores as of Jul 2023 to Sep 2023 QAAUM.
As of 30th Sep 2023, NIMF has 213.29 Lakhs​ folios and a presence in 265 locations across the country.
Kotak Mahindra Mutual Fund
Established in 1985 by Mr. Uday Kotak, Kotak Mahindra Mutual Fund was the first Indian non-banking financial company to be given a banking license in February 2003.
It caters to the financial needs of individuals and institutional investors globally, with a market cap of ₹3,668.4 Bn and a net worth of ₹165.00 Bn.
Aditya Birla Sun Life AMC Limited (ABSLAMC)
ABSLAMC, incorporated in 1994, is the investment manager of Aditya Birla Sun Life Mutual Fund. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of this AMC.
ABSLAMC operates multiple alternate strategies, including Real Estate Investments, Portfolio Management Services, and Alternative Investment Funds. As of September 30, 2023, its total assets under management (AUM) amounted to Rs. 3,235 billion, covering Mutual Funds (excluding domestic FoFs), Portfolio Management Services, Alternative Investment Funds, Offshore, and Real Estate offerings.
UTI AMC
UTI AMC ranks as the sixth biggest asset management company in India with a Total Asset Under Management of INR 15.56 lakh crore as of March 31, 2023.
It manages the portfolios of domestic and offshore funds, offering various services to high-net-worth clients, corporates, and institutions.
UTI AMC has a nationwide network comprising 190+ UTI Financial Centres and more than 210 District Associates as of September 2023.
Axis Mutual Fund
Axis Mutual Fund, launched in October 2009, has grown strongly with a product suite comprising more than 67 schemes.
Axis Mutual Fund Asset Management Company has over 1.26 Crore active investor accounts and a presence in over 100 cities.
It emphasises risk management and encourages investors to take a holistic view, aligning investments with their underlying dreams, aspirations, or goals.
Mirae Asset Global Investments
Mirae Asset Global Investments is a diversified wealth management company with a presence in 14 countries and $212bn Assets Under Management as of September 30, 2023.
The company provides innovative solutions worldwide, adapting to clients’ changing needs and delivering innovative solutions across asset classes.
Tata Mutual Fund
Tata Mutual Fund offers a range of investment solutions for financial planning and wealth creation.
The asset management company handles funds across the entire risk-return spectrum and provides portfolio management services to high-net-worth individuals and advisory services to offshore investors and fund investors in India.
The company benchmarks its efforts against the tenets of consistency, stability, flexibility, and services.
In conclusion, investing in mutual funds can be a rewarding and convenient way to achieve your financial goals. However, you need to choose the right asset management company (AMC) based on their performance and work that suits your needs and preferences.
FAQs | AMC- Asset Management Companies in India
SBI Mutual Fund, with 36 years of experience, is the biggest asset management company in India, as per the data released by AMFI India from July to September.
As of November 2023, there are 44 investment companies in India, according to the Association of Mutual Funds in India (AMFI).
an asset management company (AMC) is a company that handles money for people. They invest this money in stocks and bonds to make more money. People call them fund houses, money managers, or investment companies.
Source- amfiindia.com
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.