8.5What is an Asset Management Company (AMC)?
1What is it?
An AMC is the company that runs mutual fund schemes: SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential, UTI and many others.
2Why does it exist?
It provides the fund managers, research, operations and investor services, and earns fees through the expense ratio.
3Stock market example
Some AMCs are listed on the stock exchange, for example HDFC AMC (symbol HDFCAMC) and UTI AMC (UTIAMC).
4Quick revision
- AMC = fund house.
- Earns via expense ratio.
- Some AMCs are listed companies.
5Knowledge check
Q1. Name two AMCs.Show answer
SBI MF, HDFC MF, ICICI Prudential MF, UTI MF, Nippon India MF.
Q2. How does an AMC earn money?Show answer
From the expense ratio charged to the fund.
Q3. Can you buy shares of an AMC?Show answer
Yes, some are listed (e.g. HDFCAMC).
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