Asset Management Companies in India

Asset management companies in India are broadly categorised into three types; bank-sponsored mutual funds, mutual fund institutions, and the private sector mutual funds. There are total 44 asset management companies in India as of today (February 2017). 35 of these AMCs are part of the private sector.

All the asset management companies are part of Association of Mutual Funds in India (AMFI). AMFI was incorporated in 1995 as a non-profit organisation of all the registered AMCs in India.

Overview of Popular AMCs in India

Since the inception of mutual funds in 1963 by the UTI act of the Parliament, the industry has overseen a significant evolution to reach its present state. The introduction of the public sector then followed by the entry of private sector has marked the momentous phases of the history of the mutual fund industry.

1987 marked the entry of the public sector in the mutual funds market. SBI mutual funds, set up in June 1987, is the oldest public sector managed AMC. SBI Mutual Fund has a rich history of more 25 years and a very impressive track record. The total asset under management (AUM) of SBI Mutual Fund is reported to be over INR 1,31,647 crores in September 2016.

Kothari Pioneer (now merged with Franklin Templeton) was the first private sector managed AMC to enter the mutual fund market in 1993. Franklin Templeton has been in the industry for over two decades now. The total AUM of Franklin Templeton stands over INR 74,576 crores as recorded on September 2016.

Over the years, many private sector AMCs penetrated the mutual funds market. HDFC Mutual Fund set up in 2000 is one of the most successful Mutual Fund Houses in India. As on June 2016, the assets under management of HDFC Mutual Fund stand over INR 2,13,322 crores.

ICICI Prudential Mutual Fund was the top performing AMC in terms of average AUM from June 2015 to June 2016. The total assets under management under ICICI Prudential are estimated at around INR 193,296 crores. This amount shows a growth rate of 24% from the previous year.

Reliance Mutual Fund is one of the most popular asset management companies in the country. Reliance AMC covers around 179 cities across India, making it one of the fastest growing mutual funds in the country. As on September 2016, the total assets under management of the Reliance Mutual Fund is recorded to be over INR 18,000 crores.

Birla Sun Life Asset Management Company (BSLAMC) is also among the leading and widely known asset management companies in India. It is a joint venture of Aditya Birla Group and Sun Life Financial. The total assets under management of BSLAMC in September 2016 is reported to be INR 1,68,802 crores.

UTI Asset Management Company established in 2002, is sponsored by four public sector companies, namely LIC India, State Bank of India, Bank of Baroda and Punjab National Bank. The AUM of UTI Asset Management Company in September 2016 was estimated at INR 1,27,111 crores.

Top Asset Management Companies

1. ICICI Prudential Asset Mgmt.Company Limited

With the AUM size of approximately ₹ 3 lakh crore, ICICI Prudential Asset Management Company Ltd. is the largest asset management company (AMC) in the country. It is a joint venture between ICICI Bank in India and Prudential Plc, in UK. It was started in 1993.

Apart from mutual funds, the AMC also caters to Portfolio Management Services (PMS) and Real Estate for investors.

Top ICICI Prudential Mutual Funds 2024

2. HDFC Asset Management Company Limited

HDFC Mutual Fund is at the 2nd number by the size of AUM. With fund size of nearly ₹ 3 lakh crore, it is one of the largest mutual fund companies or AMC in the country.

Top HDFC Mutual Fund Funds 2024

3. Reliance Nippon Life Asset Management Limited

With Assets under Management of approximately ₹ 2.5 lakh crore, Reliance Mutual Fund is one of India’s leading mutual fund companies.

A part of Reliance Anil Dhirubhai Ambani (ADA) Group, Reliance Mutual Fund is one of the fastest growing AMCs in India.

Top Reliance Mutual Fund Funds 2024

No Funds available.

4. Aditya Birla Sun Life Asset Management Company Limited

Formerly known as Birla Sun Life Asset Management Company, this fund house is the 3rd largest in terms of the AUM size. Presently it is known as Aditya Birla Sun Life (ABSL) Asset Management Company Ltd. It is a joint venture between the Aditya Birla Group in India and Sun Life Financial Inc of Canada. It was set up as a joint venture in 1994.

Top Aditya Birla Mutual Fund Funds 2024

5. SBI Funds Management Private Limited

SBI Funds Management Pvt Limited is a joint venture between the State Bank of India (SBI) and financial services company Amundi, a European Asset Management company in France. It was launched in 1987.

Top SBI Mutual Fund Funds 2024

6. UTI Asset Management Company Ltd

UTI Mutual Fund is a part of Unit Trust of India (UTI). It was registered with SEBI in 2003. It is promoted by SBI, LIC, Bank of Baroda and PNB.

UTI is one of the oldest and largest mutual funds in India.

Top UTI Mutual Fund Funds 2024

7. Kotak Mahindra Asset Management Company Limited

Kotak Mahindra Mutual Fund is a part of the Kotak Group established in 1985 by Mr. Uday Kotak. Kotak Mahindra Asset Management Company (KMAMC) is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started its operations in 1998.

Top Kotak Mutual Fund Funds 2024

8. Franklin Templeton Mutual Fund

Franklin Templeton India office was set up in 1996 as Templeton Asset Management India Pvt. Limited. This mutual fund has now set up by the name, Franklin Templeton Asset Management (India) Pt Limited.

Top Franklin Mutual Fund Funds 2024

9. DSP Blackrock Mutual Fund

DSP BlackRock is a joint venture between DSP Group and BlackRock, world’s largest investment management firm. DSP BlackRock trustee Company Private Ltd. is the trustee for the DSP BlackRock Mutual Fund.

Top DSP Mutual Fund Funds 2024

10. Axis Mutual Fund

Axis Mutual Fund had launched its first scheme in 2009. Mr. Chandresh Kumar Nigam is the MD & CEO. Axis Bank Limited holds 74.99% in Axis Mutual Fund. The remaining 25% is held by Schroder Singapore Holdings Private Limited.

Top Axis Mutual Fund Funds 2024

List of Asset Management Companies in India

The complete list of asset management companies in India is as follows:

*AUM source- MorningStar

Type of Equity Mutual Funds Offered by AMC's

Mutual Fund Companies manage large sums of money invested in various schemes. Investors place confidence in the fund manager as well as the AMC while investing in their schemes.

A large AUM can be both positive, as well as negative. If invested efficiently, it can deliver manifold returns for its investors.

Different Categories of Mutual Funds are as follows:

Large Cap Funds

In this type of mutual fund, the investment is made in large-cap companies. These companies are stable, have a proven track record and good ratings. These companies have historically given returns between 12% and 18%. Moderate risk is involved and it is suggested to invest in these funds for more than 4 years.

Mid Cap Funds

In this type of mutual fund, the investment is made in mid-cap companies. These companies come after Large cap funds in the hierarchy.These companies have historically given returns between 15% and 20%. The risk is slightly more than large-cap funds. It is suggested to invest in these funds for more than 5 years.

Small Cap Funds

In this type of mutual fund, the investment is made in small cap companies. These companies offer 16-22% return. This category is a high risk- high return one.

Balanced Fund

This fund has a combination of equity and debt in its portfolio. Depending on the proportion of investment made in equity and debt, the risk and returns are accordingly determined. Investment can be made via lump sum investment or through SIP (Systematic Investment Plan) mode in any of these fund categories.

An investor can take any investment decision taking into account his/her investment objective, investment duration and risk-return capacity.