Scribd Logo
Upload

Welcome to Scribd!

  • 33 views

    School of Economics: Submitted To: Submitted

    Uploaded by

    Drx Mehazabeen Kachchawala
    An asset management company (AMC) manages funds pooled from clients and invests them in securities like stocks, bonds, and real estate. AMCs are registered with SEBI and regulated according to their rules. An AMC is formed when a sponsor establishes a trust and appoints a board of trustees. The trustees then appoint the AMC to manage the funds. An AMC's main responsibilities are portfolio management, research, and compliance with SEBI regulations. SEBI and AMFI also oversee AMC operations to ensure transparency and protect investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    School of Economics: Submitted To: Submitted

    Uploaded by

    Drx Mehazabeen Kachchawala
    33 views13 pages
    An asset management company (AMC) manages funds pooled from clients and invests them in securities like stocks, bonds, and real estate. AMCs are registered with SEBI and regulated according to their rules. An AMC is formed when a sponsor establishes a trust and appoints a board of trustees. The trustees then appoint the AMC to manage the funds. An AMC's main responsibilities are portfolio management, research, and compliance with SEBI regulations. SEBI and AMFI also oversee AMC operations to ensure transparency and protect investors.

    Original Description:

    By Mehazabeen Kachchawala

    Original Title

    Amc

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    An asset management company (AMC) manages funds pooled from clients and invests them in securities like stocks, bonds, and real estate. AMCs are registered with SEBI and regulated according to their rules. An AMC is formed when a sponsor establishes a trust and appoints a board of trustees. The trustees then appoint the AMC to manage the funds. An AMC's main responsibilities are portfolio management, research, and compliance with SEBI regulations. SEBI and AMFI also oversee AMC operations to ensure transparency and protect investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    33 views13 pages

    School of Economics: Submitted To: Submitted

    Uploaded by

    Drx Mehazabeen Kachchawala
    An asset management company (AMC) manages funds pooled from clients and invests them in securities like stocks, bonds, and real estate. AMCs are registered with SEBI and regulated according to their rules. An AMC is formed when a sponsor establishes a trust and appoints a board of trustees. The trustees then appoint the AMC to manage the funds. An AMC's main responsibilities are portfolio management, research, and compliance with SEBI regulations. SEBI and AMFI also oversee AMC operations to ensure transparency and protect investors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 13

    School Of Economics

    Submitted To: Submitted By:


    Mr N. Patidar Sir Mehzabeen Kachachawala
    Amisha Garg
    Nimesh Kahndelwal
    Mahesh Sahu
    Saket K. Mishra
    ASSET
    MANAGEMENT
    COMPANY
    (AMC)
    Definition
    ► An Asset Management Company (AMC) is a firm
    that invests pooled funds from clients, putting the
    capital to work different investments including
    stocks, bonds, real estate, master limited
    partnerships, and more.
    ► Along with high-net-worth individual portfolios,
    AMCs manage hedge funds and pension plans,
    and—to better serve smaller investors—create
    pooled structures such as mutual funds, index
    funds, or exchange-traded funds, which they can
    manage in a single centralized portfolio.
    HOW AN AMC IS FORMED ?
    SPONSORS Forms a trust and
    ► Companies have to be registered appoints a board of
    under the Company’s Act, 2013. trustees
    AMC is subject to the regulation of TRUSTEES Regulate the mutual
    Securities And Exchange Board Of fund while adhering
    India. to SEBI & AMFI

    ► Trustees appoint AMC as AMC Takes a call on


    which fund to
    investment mangers of the trust as buy/sell/hold and
    per recommendation of the engages in the
    buying and selling
    sponsors. of securities

    ► The trustees and the AMC sign the CUSTODIAN Responsible for
    investment management holding and
    safeguarding the
    agreement that contains the duties, mutual fund units
    rights and functions of AMC.
    REGISTRAR AND They are the record
    TRANSFER keepers
    AGENTS
    Functions of Asset Management
    Company
    ► Portfolio management
    ► Advisory services
    ► Exercise due diligence-
    ► Quarterly reports
    ► Compensation to affected investor
    ► Arrangement of approval
    ► It shall abide by the Code of Conduct specified
    by the SEBI.
    ► Treating the customers fairly
    ► A best-endeavors obligation
    Regulatory requirements
    for amc
    ► Only SEBI registered AMCs can be appointed as
    investment manager of M.f. .
    ► AMC must have minimum net worth of Rupees 10
    crore, at all times.
    ► An AMC cannot be an AMC or trustee of another
    mutual fund
    ► At least half of the member of the board of an
    AMC have to be independent.
    Obligations of an AMC

    ► Investments have to be according to the


    Investment Management Agreement and SEBI
    Regulations.
    ► The actions of its employees and associates have
    to be as mandated by the trustee.
    ► AMCs have to submit detailed quarterly reports
    on the working and performance of the mutual
    funds and compliance with SEBI regulations.
    ► AMC have to make the necessary statutory
    disclosures on portfolio, NAV and price to
    investors.
    RESTRICTIONS ON BUSINESS
    ACTIVITIES OF AMCs
    ► The AMC shall not undertake any business activity
    except in the nature of portfolio management
    services, mgmt. and advisory services to offshore
    funds etc. ,provided these activities are not in
    conflict with activities of mutual fund.
    ► AMC shall not invest in any of its scheme unless full
    disclosure of its intention to invest has been made
    in the offer document.
    ► AMC shall not act as a trustee of any mutual
    funds.
    How does an AMC manage
    the funds?

    ► Asset Allocation
    ► Research and Analysis
    ► Portfolio Construction
    ► Performance Review
     
    Role of SEBI & AMFI in AMC
    Operations
    ► An Asset Management Firm acts under the supervision of the
    board of trustees. But they are answerable to India’s capital
    market regulator, Securities and Exchange Board of India
    (SEBI). The Association of Mutual Funds in India (AMFI) is
    another statutory body that addresses investors’ grievances .
    Every fund house must comply with the set of risk
    management guidelines by SEBI and AMFI.

    ► While SEBI is a government body, mutual fund companies


    themselves formed the AMFI. Together, they strive to keep the
    functioning of the industry ethic-driven and transparent. RBI
    also plays an important role in regulating AMCs, if a bank is
    one of the sponsors. Finally, the Ministry of Finance works as
    the authority for all these regulators.
     Are fund houses as reliable as
    Banks?
    ► There is a widespread notion that mutual funds are not as safe
    as bank accounts or schemes offered by banks. People fear
    that AMCs can get shut down any time. This is because banks
    are visible to all and regulated by RBI. However, people often
    overlook the fact that mutual fund companies too are under
    the purview of RBI and finance ministry and hence quite safe.
    ► The sponsor or the trustees appoint an AMC for managing the
    pool of funds. The AMC charges a fee and acts under the
    supervision of the trustees, who are in turn regulated by SEBI.
    The primary reason for this is to ensure objectivity and
    transparency. So, you can go ahead and invest your money
    in mutual funds to build long-term wealth while saving on
    taxes.
    EXAMPLES OF AMCs

    ► ICICI Prudential Mutual Funds


    ► HDFC Mutual Funds
    ► Reliance Mutual Fund
    ► Aditya Birla Sun Life Mutual Fund
    ► SBI Mutual Fund
    ► UTI Mutual Fund
    ► Kotak Mahindra Mutual Fund
    THANK YOU

    You might also like