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Asset Management Company
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An Asset Management Company is a company that is responsibile for pooling money from investors into securities that match declared financial objectives.
It is responsible for conducting the day to day affairs of the various schemes that are managed by it.
AMC's launch and wind-off schemes, assign fund managers to schemes, manages the financial operations such as collecting money into the bank account, making payment obligations in case of redemption etc.
AMCs generally have a well documented process according to which the fund manager will make investments into the schemes.
Thus, in case of an exit by a fund manager, the new manager who comes in his place can follow the process easily without having much of a discontinuity.
It charges an AMC fee for the services it renders. In most cases, this fee is charged from the scheme.
Related Topics
- Introduction to Mutual Funds
- Mutual Fund Units
- New Fund Offer (NFO)
- Net Asset Value or NAV
- Know Your Customer / KYC
- Expense Ratio
- Systematic Investment Plan and Compounding effect
- Systematic Transfer Plan (STP)
- Systematic Withdrawal Plan (SWP)
- SIP vs Lumpsum Investments
- Open-ended, Close-ended and Interval schemes
- DIRECT plan vs REGULAR plan
- GROWTH option vs DIVIDEND option