Top-performing AMC funds with asset size and details of their top fund managers.

Top-performing AMC funds with asset size and details of their top fund managers.

Mutual Fund AMCs, also known as Asset Management Companies, invest their client’s money in a variety of asset classes.

This blog contains a list of the largest and the top Mutual Funds in India, their Assets Under Management (AUM), and other pertinent information.

 

Meaning of AMC (Asset Management Company)

An Asset Management Company (AMC) is a company that invests financial assets, such as funds and money from investors, companies, or other AMC, in companies that use those assets as a financial investment, operational investment, or any other type of investment to grow the investment.

10 Asset Management Companies (AMCs) in India, ranked by their Assets Under Management (AUM), are as follows:

 

These figures are based on data available as of March 2024

1. SBI Funds Management: ₹913,780.06 crores ( SBI Mutual Fund was founded in 1987.)
2. ICICI Prudential Asset Management Company: ₹720,000 crores   ( In 1998, ICICI Bank and Prudential Plc formed a joint venture (JV) to create ICICI Prudential Mutual Fund. )
3. HDFC Asset Management Co. Ltd.: ₹614,665.43 crores  ( HDFC Mutual Fund in 1999 (SLI).
4. Nippon Life India Asset Management: ₹438,276.85 crores   ( In 1995, Nippon India Mutual Fund was founded  )
5. Kotak Mahindra Asset Management Co. Ltd.: ₹381,239.57 crores ( Kotak Mahindra Mutual Fund was founded in 1998. )
6. Aditya Birla Sun Life Asset Management: ₹315,777.58 crores (A joint venture between the Aditya Birla Group and Sun Life Financial Inc. of Canada resulted in the creation of Sun Life Mutual Fund in 1994  )
7. UTI Asset Management Company: ₹286,593.27 crores (UTI Mutual Fund was founded in 2003  )
8. Axis Asset Management Company: ₹266,826.23 crores ( The fund was incorporated on January 13, 2009, and launched its first scheme in October of that year. )
9. Mirae Asset Global Investments (India Pvt. Ltd.): ₹173,787 crores ( Mirae Asset Mutual Fund is a part of Mirae Asset Financial Group, a global financial services firm headquartered in South Korea. In India, Mirae Asset Mutual Fund is managed by Mirae Asset Investment Managers (India) Pvt. Ltd., which was established in 2007. )
10. DSP Asset Management Company Ltd.: ₹138,986.33 crores  ( As a joint venture between Merrill Lynch Investment Managers and DSP Merrill Lynch Ltd., DSP Mutual Fund was founded in 1996 )

 

Other Notable AMCs:

11. Tata Mutual Fund
12. Franklin Templeton Mutual Fund
13. IDFC Mutual Fund (now Bandhan AMC)
14. L&T Mutual Fund (acquired by HSBC)
15. Invesco Mutual Fund
16. Motilal Oswal Mutual Fund
17. Edelweiss Mutual Fund
18. Canara Robeco Mutual Fund
19. Sundaram Mutual Fund
20. HSBC Mutual Fund

 

 

How are the funds managed by an AMC?

Basically, when you invest with an AMC, you invest in a portfolio that AMC maintains for you. It is the responsibility of AMC to ensure an investor’s financial objective is met .AMC ensures this by the following means:

 1.    Market Research and Analysis

 To build a portfolio for an investor the asset manager needs to do a lot of research on the market trends, macro-economic and micro-economic factors, political aspects. On the basis of this research, the appropriate securities are selected which will outperform the return expectations of the investors.

 

2. Asset Allocation

 On the basis of market research and investor's financial objective, the asset manager allocates the funds to different assets. For example, a debt-oriented would invest just 20% in equity-oriented funds to keep the risk levels low. However, an equity-oriented fund would invest more than 70% in equity and rest in debt. A balanced fund would end up with just 60% in equity and 40% in debt to balance out return and risk.

3 . Creating a Portfolio

After research and analysis by analyst and decision of asset allocation are done, the asset manager on the basis of market findings creates a portfolio. Here the asset manager will take decisions like which security to sell, buy or hold for a period. The entire creation of portfolio is solely based on the market expertise of professionals, research and study and investment goals of the investor.

4.  Review of Performance

Since the fund of an investor is at stake, the performance measurement of the portfolio becomes very important. At every point, the asset manager has to justify a buy, sell or hold securities to investors and trustees. Every asset manager generally provide regular updates investor regarding sales, repurchases, NAV, return on risk, portfolio changes and factors which might affect their portfolio.

 

How do Asset Management Company functions?

 

An AMC collects funds from different investors having different financial objectives. Now it invests such a large pool of funds in a very diversified portfolio and enjoys economies of scale, getting discounts on purchases. The return earned by the portfolio is then distributed among all the small retail investors.

Let us see how an Asset Management Company functions:

An AMC collects funds from different investors having different financial objectives. Now it invests such a large pool of funds in a very diversified portfolio and enjoys economies of scale, getting discounts on purchases. The return earned by the portfolio is then distributed among all the small retail investors.

The services provided by an AMC is charged either on a fixed basis or commission-based. Fixed Fee is nothing but a monthly or quarterly amount for maintaining the fund.

 

Points to consider before you choose an AMC:

Every AMC follows the investment objective of the schemes before investing and you must check on the track record and performance history of the investment schemes in the past during the ups and downs of the market.

It is very important to know your AMC well before you invest your hard-earned money.

While selecting a fund house ensure that the below parameters met.

a. The reputation of an AMC- Reputation is built by consistency in performance over a few years say 5 years or 10 years. The investor must go through the performance through annual reports of schemes and AMC, reviews prevalent in the market and compliance report to SEBI, AMFI, and RBI.

b. Fund Manager's credibility- AMC work in parallel to its fund manager. The performance of the fund manager is now the performance of AMC then. Hence, an investor must look for past performance of the fund manager w.r.t managing the assets and funds.

c .Price and Value- Before selecting any fund, an investor must consider looking at the price of the fund and the value creation and return that the fund offer.

d .Fees and commission- Few AMCs charges a fixed fee for their services while others charge a commission on the return earned on the fund. A fixed is considered over commission because an investor will always know the outflow amount beforehand.

 

Bodies Governing AMC's Operations

AMC performs under the supervision of the board of trustees. All the Asset Management Companies are governed by SEBI and AMFI.

Securities and Exchange Board of India (SEBI) is the Indian Capital Market Regulator which governs and controls every AMC in India.

The Association of Mutual Funds in India (AMFI) is a statutory body formed by mutual fund companies. AMFI was formed with the vision of a transparent and ethic driven financial industry. Every AMC must comply with the regulations led by AMFI.

Banks being sponsors are governed by RBI as well along with SEBI and AMFI.

Lastly, all the regulatory bodies SEBI, AMFI, and RBI are governed by RBI.

 

Guidelines laid by SEBI, AMFI, and RBI for an AMC

Some of the mandatory practices and guidelines laid down by SEBI, AMFI, and RBI for a mutual fund company to follow:

a. The Chairman of an AMC cannot hold the position of Trustee of any mutual fund.

b. Key personnel of every AMC should not have indulged or convicted for any fraudulent or offensive acts.

c. AMC should not act as a Trustee of a mutual fund.

d. The net worth of an AMC must be not less than Rs. 10 crores.

e. Before making an investment in any of its schemes the company must disclose its intention to invest in the offer documents.

f. A quarterly report on activities and compliance of regulations must be submitted to the trustees.

 

Reliability of AMC compared to Banks

 

We often have the notion that mutual fund companies are not as reliable as Banks and the schemes offered by AMC is not as secure as a Fixed Deposit Interest. The fact is every mutual fund company or AMC is governed by RBI and Ministry of Finance just like any Bank. Hence, it is safe to invest with a mutual fund company or AMC.

An AMC is appointed by the sponsor and trustee to manage the pool of funds. AMC acts under the supervision of trustees who are governed by SEBI and AMFI. This ensures transparency, accountability, and objectivity. Hence one must go ahead and invest to optimize their wealth and save their taxes.

 

Now understand types of mutual funds

Types of Mutual Funds:

1. Equity Mutual Funds: These invest primarily in stocks and aim for capital appreciation.
• Types: Large-cap, mid-cap, small-cap, multi-cap, sectoral/thematic, and index funds.
2. Debt Mutual Funds: These invest in fixed-income securities like bonds, government securities, and money market instruments. They are considered less risky compared to equity funds.
• Types: Liquid funds, short-term funds, long-term funds, corporate bond funds, government bond funds, etc.
3. Hybrid Mutual Funds: These invest in a combination of equities and debt instruments, offering a balance between risk and return.
• Types: Balanced funds, aggressive hybrid funds, conservative hybrid funds, etc.
4. Index Funds: These funds track a specific index (like Nifty 50 or Sensex) and aim to replicate its performance.
5. Sectoral/Thematic Funds: These invest in specific sectors or themes like technology, pharmaceuticals, banking, etc.
6. International Funds: These invest in foreign equities and bonds, offering exposure to global markets.
7. ELSS (Equity Linked Savings Scheme): These are tax-saving funds with a 3-year lock-in period under Section 80C of the Income Tax Act.
8. Solution-Oriented Funds: These are designed for specific financial goals like retirement or children’s education.

Now lets understand About  liquid funds  

As of December 31, 2024, the Indian mutual fund industry's Assets Under Management (AUM) reached ₹66.93 trillion, marking a significant growth from ₹10.51 trillion on December 31, 2014.

Where do they invest

Liquid funds, a category within debt mutual funds, are designed for short-term investments, offering high liquidity and low risk. They invest in short-term money market instruments like Treasury bills, commercial papers, and certificates of deposit.

While specific data on the exact proportion of liquid funds within the total AUM is not provided in the available sources, liquid funds are a significant component of the debt mutual fund segment. For instance, individual liquid funds manage substantial assets:

 

• Nippon India Liquid Fund - Retail Plan: As of September 30, 2024, this fund held an AUM of ₹32,107.82 crore.
• Bank of India Liquid Fund - Regular Plan: As of September 30, 2024, this fund managed an AUM of ₹1,699.08 crore. Additionally, top-performing liquid funds in India manage significant assets:

• SBI Liquid Fund: ₹46,759.17 crore.
• UTI Liquidity Cash Fund: ₹30,477.37 crore.
• Kotak Liquid - Regular Plan - Growth: ₹27,114.39 crore.

These figures illustrate the substantial role that liquid funds play within the Indian mutual fund industry, providing investors with options for managing short-term liquidity needs.

Now understand how to use systematic transfer plan here we go

If you have Big Money there are Liquid funds as well let’s understand about them as well

Smart move will be moving your big money into stock market using S T P  

 ( STP  Systematic transfer plan )

1. Systematic Transfer Plan (STP)

• Purpose:
• STP is used to transfer funds from one mutual fund scheme to another within the same AMC.
• It is mainly used when an investor wants to gradually move from a low-risk asset (like a liquid or debt fund) to a higher-risk asset (like an equity fund).
• It can also be used to transfer between different schemes based on market conditions or risk preferences.
• How it works:
• You invest a lump sum amount in a low-risk fund (like a liquid fund) and then systematically transfer a fixed amount or a percentage of that investment into another scheme (usually an equity fund) at regular intervals (e.g., monthly, quarterly).
• Ideal For:
• Investors who want to move funds gradually into riskier investments.
• Investors who are looking for asset allocation adjustments over time, without making one large investment at once.
• Example:
• You invest ₹10 lakh in a liquid fund, and set up an STP to transfer ₹50,000 monthly into an equity fund.

 

 

Liquid funds are a type of debt mutual fund that invest in short-term money market instruments like Treasury bills, commercial papers, certificates of deposit, and call money. These funds aim to provide high liquidity with low risk. Since the investment horizon is short-term, they are generally used for parking surplus cash for a brief period.

Types of Liquid Funds:

1. Pure Liquid Funds:
• These invest only in instruments with very short maturities (usually up to 91 days).
• They offer high liquidity and low risk, making them ideal for parking idle funds for a short duration.
• Example: HDFC Liquid Fund, ICICI Prudential Liquid Fund.
2. Ultra-Short Duration Funds:
• These funds invest in instruments with slightly longer maturities (less than 1 year but more than 91 days). They may offer slightly higher returns than pure liquid funds but come with a bit more risk.
• Example: DSP Liquidity Fund, Kotak Liquid Fund.
3. Money Market Funds:
• These are similar to liquid funds, but their investment horizon is slightly longer. Money market funds invest in debt instruments that are typically maturing within one year.
• They are considered low-risk, low-return investment options, with returns generally higher than pure liquid funds.
• Example: Franklin Templeton Money Market Fund, SBI Magnum Money Market Fund.
4. Short-Term Funds:
• Although not exactly liquid funds, short-term funds invest in securities with slightly longer maturities (up to 3 years), but they may be used for liquidity purposes.
• They tend to offer a higher return than pure liquid funds.
• Example: Axis Short Term Fund, ICICI Prudential Short Term Fund.

Key Features of Liquid Funds:

• Investment Horizon: Typically, a few days to a few months.
• Risk Level: Low risk.
• Liquidity: High, with quick redemption (usually within 24 hours).
• Returns: Lower than equity funds but higher than savings accounts or fixed deposits.
• Suitability: Ideal for short-term goals or to park excess cash for a brief period.

Make sure you park your money only on Leading AMCs Offering Liquid Funds:

• HDFC Mutual Fund
• ICICI Prudential Mutual Fund
• SBI Mutual Fund
• Aditya Birla Sun Life Mutual Fund
• Kotak Mutual Fund
• Axis Mutual Fund
• Franklin Templeton Mutual Fund

Liquid funds are generally used for parking money for a short period or as an alternative to savings accounts. They are low-risk and offer a better return than typical savings accounts.

 

list of top-performing mutual funds offered by the leading AMCs in India,

based on returns over a medium-term horizon (3-5 years), in the following categories:

1. Large-Cap Funds
2. Mid-Cap Funds
3. Small-Cap Funds
4. Multi-Cap/Flexi-Cap Funds
5. ELSS (Tax-Saving Funds)
6. Hybrid Funds

Top-performing mutual funds offered by leading Asset Management Companies (AMCs) in India, categorized by fund type and based on their performance over the past 3 to 5 years:

1. Large-Cap Funds:

• Canara Robeco BlueChip Equity Fund Direct-Growth
• 5-Year Return: 24.91%
• Expense Ratio: 0.42%
• Assets Under Management (AUM): ₹8,642 crore
• Exit Load: 1.0%
• AMC: Canara Robeco Mutual Fund

2. Mid-Cap Funds:

• Motilal Oswal Midcap Fund
• 3-Year CAGR: 37.41%
• Minimum SIP Investment: ₹500
• AMC: Motilal Oswal Asset Management Company Limited
• PGIM India Mid-Cap Opportunities Fund
• 5-Year Return: 18.33%
• Expense Ratio: 0.5%
• AUM: ₹7,617 crore
• Exit Load: 0.5%
• AMC: PGIM India Mutual Fund

3. Small-Cap Funds:

• Nippon India Small Cap Fund
• 3-Year CAGR: 30.14%
• Minimum SIP Investment: ₹100
• AMC: Nippon Life India Asset Management Limited
• Quant Small Cap Fund
• 3-Year CAGR: 28.87%
• Minimum SIP Investment: ₹1,000
• AMC: Quant Money Managers Limited

4. Multi-Cap/Flexi-Cap Funds:

• Parag Parikh Flexi-Cap Fund Direct-Growth
• 5-Year Return: 16.48%
• Expense Ratio: 0.76%
• AUM: ₹29,345 crore
• Exit Load: 2.0%
• AMC: PPFAS Mutual Fund

5. ELSS (Tax-Saving Funds):

• Mirae Asset Tax Saver Fund Direct-Growth
• 5-Year Return: 25.48%
• Expense Ratio: 0.54%
• AUM: ₹14,020.27 crore
• Exit Load: None
• AMC: Mirae Asset Mutual Fund

6. Hybrid Funds:

• UTI Aggressive Hybrid Fund Regular Plan-Growth
• 5-Year Return: 18.58%
• AMC: UTI Mutual Fund
• Canara Robeco Equity Hybrid Fund Direct-Growth
• 5-Year Return: 16.95%
• AMC: Canara Robeco Mutual Fund

 

The  top Asset Management Companies (AMCs) in India, along with their key fund managers and their tenures:

1. SBI Mutual Fund

• Raviprakash Sharma: Associated with SBI Mutual Fund since 2011, managing 12 mutual fund schemes with assets worth ₹1.88 lakh crore

2. ICICI Prudential Mutual Fund

• Sankaran Naren: Chief Investment Officer at ICICI Prudential Mutual Fund, overseeing investment functions for both international advisory and mutual funds. With over 26 years of experience, Naren is renowned for his insights into macroeconomics and market trends.
• Manish Banthia: Senior Fund Manager at ICICI Prudential Mutual Fund since 2009, managing 24 mutual fund schemes. Banthia has extensive experience in managing fixed income and equity-oriented schemes.

3. HDFC Mutual Fund

• Prashant Jain: Former Chief Investment Officer at HDFC Mutual Fund, known for his long tenure and consistent performance. He managed several flagship schemes before his departure in 2022.

4. Nippon India Mutual Fund

• Sailesh Raj Bhan: Deputy CIO - Equity Investments at Nippon India Mutual Fund, with over 25 years of experience in equity research and fund management.

5. Kotak Mahindra Mutual Fund

• Harsha Upadhyaya: Chief Investment Officer – Equity at Kotak Mahindra Mutual Fund, managing 14 schemes with over 23 years of experience. Upadhyaya specializes in equity research and portfolio management.

6. Aditya Birla Sun Life Mutual Fund

• Mahesh Patil: Chief Investment Officer at Aditya Birla Sun Life Mutual Fund, with over 30 years of experience in fund management and equity research.

7. UTI Mutual Fund

• Ankit Agarwal: Fund Manager at UTI Mutual Fund, managing 5 schemes with over 15 years of experience. Agarwal has a strong background in equity research and portfolio management.

8. Axis Mutual Fund

• Jinesh Gopani: Head of Equities at Axis Mutual Fund, overseeing 24 mutual fund schemes with 17 years of experience. Gopani is known for his expertise in equity investments and portfolio management.
• Shreyash Devalkar: Senior Fund Manager at Axis AMC, managing funds such as the Bluechip Fund, Midcap Fund, and Multicap Fund. With 14 years of experience, Devalkar has a strong track record in equity fund management.

9. DSP Mutual Fund

• Vinit Sambre: Head of Equities at DSP Mutual Fund, with over 20 years of experience, focusing on mid and small-cap companies.

10. Mirae Asset Mutual Fund

• Neelesh Surana: Chief Investment Officer at Mirae Asset Mutual Fund, with over 24 years of experience in equity research and portfolio management.

All they are genius in their industry huge respect for them 

I hope you  have got all Knowledge about & top fund mangers 

Wise investing 

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