What is an Asset Management Company (AMC)?
An Asset Management Company (AMC) 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.
Asset Management Company (AMC)
Asset Management Company collects investments from a different investor, make a pool of funds collects and invest in a diversified portfolio across Equity, Debt and Risk-Free Instruments.
Factors such as industry risk, market risk, return risk, political risk are considered before selecting any security to meet the return on investment targets. For example, a debt fund invests in bonds and risk-free Government bonds to maintain the minimum risk. On the other side, an equity-oriented fund will invest in shares and stocks with high risk and high return.