Best Asset Management Companies (AMCs) to Invest within India 2024

by Siddharth Singh Bhaisora

Published On May 6, 2024

In this article

The Indian mutual fund industry's dynamic growth not only reflects the evolving financial landscape of India but also underscores the importance of choosing the right fund house. For investors, the industry offers flexibility, affordability, and a chance for diversification , essential for building a resilient investment portfolio. Let’s look at the top Asset Management Companies (AMCs) that are leading the Indian mutual fund industry in 2024.

What is an Asset Management Company (AMC)?

An Asset Management Company (AMC) is an organization that pools resources from individual investors, companies, or other AMCs to invest in various financial, operational, or other types of investments. The goal of an AMC is to grow these investments through strategic financial management and investment tactics. Returns generated from these investments are distributed back to the investors, minus a fee retained by the AMC as compensation for their management services. These entities are often referred to as fund houses, money managers, or money management firms.

Role of an AMC

AMCs employ fund managers who are responsible for setting investment goals, assessing risk versus reward, and crafting an investment strategy that aligns with the objectives of the funds they manage. An AMC may oversee a diverse array of funds, each with distinct investment targets and strategies.

Overview of the Indian Asset Management Industry

The Assets Under Management (AUM) of the Indian mutual fund industry have seen remarkable growth. From ₹8.25 trillion on March 31, 2014, the AUM has escalated to ₹53.40 trillion by March 31, 2024. This more than six fold increase over ten years highlights the industry's robust expansion and investor confidence.

In the past 5 years alone, the industry's AUM has more than doubled, rising from ₹23.80 trillion in 2019 to ₹53.40 trillion in 2024. Such growth is indicative of both increased investor participation and broader economic factors that have favored investment in mutual funds.

The journey to this substantial AUM included crossing the ₹10 trillion mark in May 2014, and achieving rapid growth to over ₹20 trillion by August 2017. The AUM reached ₹30 trillion by November 2020 and stood at ₹53.40 trillion by March 2024, reflecting sustained investor trust and market growth.

The Indian mutual fund industry has also seen a significant increase in investor participation. From surpassing 10 crore (100 million) folios in May 2021, the total number of folios grew to 17.79 crore (177.9 million) by March 31, 2024. A large portion of these, approximately 14.24 crore (142.4 million) folios, are held in equity, hybrid, and solution-oriented schemes, mainly from retail investors.

This substantial growth in both AUM and investor folios suggests a growing trust in mutual funds as a viable investment option. The trends point towards an increasing preference for equity and hybrid schemes, indicating a shift towards potentially higher-risk, higher-return investments. The retail segment's robust participation underlines the accessibility and appeal of mutual funds as tools for financial inclusion and wealth creation.

How to Choose the Right AMC

Selecting the best Asset Management Company (AMC) is crucial for your investment success. Here are straightforward steps to guide you:

1. Assess Track Record

Look for an AMC with a strong track record of performance over at least 5-10 years. Consistency in beating benchmarks and peers is a key indicator of an AMC’s capability.

2. Examine Management Quality

The expertise and stability of the fund management team are critical. An AMC with experienced and long-standing fund managers tends to be more reliable.

3. Understand Fees and Charges

Different AMCs have varying fee structures. Compare the expense ratios and exit fees of different AMCs. Lower fees can significantly impact your investment returns over time.

4. Diversity of Offerings

Choose an AMC that offers a wide range of investment products. An AMC with a diverse portfolio provides more options to align with your investment goals

5. Risk Management

Evaluate how the AMC manages risk. Their approach to risk in various market conditions can affect your potential returns and investment security.

6. Customer Service

Good customer service is essential for effective communication. Ensure the AMC has a reputation for responsive and helpful customer support.

7. Accessibility and Tools

Look for AMCs that offer robust online tools and platforms for tracking and managing your investments easily.

8. Regulatory Compliance

Ensure the AMC complies with all regulatory requirements. This minimizes the risk of unethical practices that could affect your investments.

9. Size and Stability

While size isn’t the only indicator of an AMC’s quality, a well-established AMC with a substantial asset base can offer stability and security.

10. Investor Education

Some AMCs provide educational resources that can help you make informed decisions. These resources can be particularly valuable for new investors.

Top AMCs in India for 2024

Here's a detailed overview of the top 10 mutual funds in India , featuring their unique strengths, investment strategies, client-focused approaches, key highlights and achievements, range of products and services offered, and their market position and performance:


Unique Strengths

Client-Focused Approach

Key Highlights & Achievements

Products and Services

AUM as of March 2024

SBI Mutual Fund

Leveraging SBI's vast network and AMUNDI's expertise

Aim to be the most dependable AMC

Largest mutual fund in India

Offers equity, debt, balanced, and overseas funds

₹919,519 Cr

ICICI Prudential Mutual Fund

Combines ICICI's & Prudential's financial expertise

Positive investing experience and wealth building

Known as one of the best AMCs in India

Equity, debt, hybrid, ETFs, solution-oriented schemes

₹716,867 Cr

HDFC Mutual Fund

Partnership between HDFC and Standard Life Investments

Focus on steady administration and accessibility

Among India's largest and most profitable AMCs

Equity, debt, hybrid, fund of funds, ETFs

₹614,665 Cr

Nippon India Mutual Fund

Largest and fastest-growing in terms of AUM

Emphasis on customer service and governance

Known for innovative product offerings

Equity, debt, balanced funds, ETFs, retirement funds

₹438,276 Cr

Kotak Mahindra Mutual Fund

Tailored funds for various risk-return profiles

Ensures customer satisfaction

Recognized for a robust selection of investment products

Equity, debt, hybrid funds, fund of funds, ETFs

₹381,239 Cr

Aditya Birla Sun Life Mutual Fund

Extensive reach and innovative products

Focus on reliable investment performance

One of India's largest AMCs

Equity, debt, balanced funds, fund of funds, offshore funds

₹315,777 Cr

UTI Mutual Fund

Pioneering with industry-led best practices

Dedicated to best-in-class service and national growth

Popular for its comprehensive investment options

Mutual funds, PMS, retirement solutions, alternative funds

₹286,593 Cr

Axis Mutual Fund

Strong focus on risk management and planning

Customer-centric service and simple digital processes

Gained significant investor folios

Equity, debt, hybrid funds, special situation funds

₹266,826 Cr

DSP Mutual Fund

Collaboration with Merrill Lynch for global insights

Prioritizes customer interests and performance

Established as one of India's leading AMCs

Equity, debt, hybrid funds, ETFs, closed-ended funds

₹138,986 Cr

Bandhan Mutual Fund

Strong research division and major stake by Bandhan Financial Holdings

Focus on control and operations after acquisition

Among the largest in terms of AUM

Diverse mutual fund offerings

₹134,908 Cr

Top AMCs in India have significantly Indian markets given the large volumes of assets and its ability to serve a wide range of investors. The magnitude of their managed assets underlines their pivotal role in the financial industry, impacting retail and institutional investment strategies across the nation.

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Benefits of Asset Management Companies

Understanding the benefits of top Asset Management Companies can help investors make more informed decisions about where and how to invest their money in the Indian financial market.

Management Fees:

AMCs earn management fees as compensation for overseeing and managing the assets within their mutual funds. These fees are usually a percentage of the total Assets Under Management (AUM), providing a steady revenue stream.

Performance Fees:

Some AMCs may also earn performance fees if the funds they manage exceed a specified benchmark. This not only provides an additional revenue source but also incentivizes AMCs to aim for higher performance.

Distribution Fees:

AMCs often receive distribution fees for promoting and selling their mutual fund products. These fees help offset the costs associated with marketing and distribution efforts, supporting the overall business operations.

Economies of Scale:

As the AUM grows, AMCs can benefit from economies of scale, which allows for the spreading of fixed costs over a larger asset base, potentially leading to improved profit margins and operational efficiency.

Downsides of Asset Management Companies

Fees and Expenses:

While management fees are a source of income for AMCs, they are also an expense for investors. High fees can eat into investment returns, reducing the overall profitability of the investors’ portfolios.

Market Risk Exposure:

AMCs are inherently exposed to market risks. Economic downturns or unfavorable market conditions can lead to a decrease in asset values, affecting both the profitability of the AMC and the returns for its investors.

Performance Fluctuations:

The performance of mutual funds is subject to market fluctuations. Poor investment decisions, economic uncertainties, or shifts in market trends can lead to underperformance, which can impact investor confidence and returns.

Conflict of Interest:

Potential conflicts of interest may arise, especially when an AMC manages multiple funds with different objectives. Balancing the interests of various funds and their investors can be challenging, and may not always align with the goals of individual investors.

Regulatory Changes:

The financial industry is subject to regulatory changes that can impact the operations of AMCs. New or amended regulations may necessitate adjustments in fund management strategies, which could affect the outcomes for investors.

Tax Considerations for AMC Investors

Understanding tax implication of mutual funds for Indian investors can help investors plan their mutual fund investments more effectively, potentially reducing their overall tax liability and optimizing their returns. Let’s look at the tax considerations for AMC investors.

Variables Determining the Taxation for Mutual Funds:

  • Types of Funds:

    • Equity-Oriented Mutual Funds: Generally, funds with at least 65% investment in equities.

    • Debt-Oriented Mutual Funds: Funds that invest primarily in debt instruments.

  • Capital Gains: This refers to the profit made when a capital asset (like mutual fund units) is sold for more than its purchase price.

  • Dividend: A portion of the profits distributed by the mutual fund house to its investors.

  • Holding Period: The duration for which an investment is held. Longer holding periods typically benefit from lower tax rates, encouraging long-term investment.

Taxation of Dividends Provided by Mutual Funds:

Post Finance Act 2020:

  • The Dividend Distribution Tax (DDT) was abolished. Previously, it was deducted by mutual fund houses before paying dividends to investors.

  • Now, dividends are taxed in the hands of investors according to their income tax brackets under "Income from Other Sources".

  • Mutual fund schemes are required to deduct 10% TDS on dividends if the total dividend exceeds ₹5,000 in a financial year.

Taxation of Capital Gains Provided by Mutual Funds:

Understanding how your mutual fund returns are taxed is essential for any investor in India. Here’s a breakdown of the key factors and categories affecting the taxation of mutual funds:



Dividend Taxation

Dividends taxed as "Income from Other Sources". 10% TDS if dividends exceed ₹5,000 annually.

Equity Funds

STCG: Taxed at 15% if held <12 months.

LTCG: Tax-free up to Rs 1 lakh; 10% tax above Rs 1 lakh if held >12 months.

Debt Funds

STCG: Added to income and taxed per slab if held <36 months.

LTCG: Taxed at 20% with indexation if held >36 months.

Hybrid Funds

Equity-oriented: Taxed like equity funds.

Debt-oriented: Taxed like debt funds.

Securities Transaction Tax (STT)

Equity and Equity-Oriented Hybrid Funds: 0.001% on sale.

Debt Funds: Exempt from STT.

Equity Funds:

  • Short-term capital gains (STCG): If units are sold within 12 months, gains are taxed at 15%.

  • Long-term capital gains (LTCG): For units held for over 12 months, gains up to Rs 1 lakh are tax-free. Gains exceeding Rs 1 lakh are taxed at 10% without indexation benefits.

Debt Funds:

  • STCG: If units are sold within 36 months, gains are added to the investor’s income and taxed according to their income tax slab.

  • LTCG: For units held for more than 36 months, gains are taxed at 20% with indexation benefits.

Hybrid Funds: Taxation depends on the fund’s equity exposure.

  • Equity-oriented: Similar to equity funds.

  • Debt-oriented: Taxed like debt funds.

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How can I determine the right AMC for my investment needs?

To find the right Asset Management Company (AMC) that fits your investment needs, assess their performance history, investment philosophy, and the variety of products they offer. Look for AMCs with strong, consistent fund performance and those offering funds that match your risk tolerance and investment timeline. Reading reviews and comparing their fee structures are also crucial steps.

How can I get started with investing in an AMC?

To begin investing in an AMC, start by defining your investment goals and risk tolerance. Next, research various AMCs to find one that offers products aligning with your objectives. You can then open an investment account directly through the AMC's website or through a financial advisor. Ensure you understand the terms and conditions, especially regarding deposits, withdrawals, and fees.

Can you provide examples of investment strategies employed by AMCs?

AMCs use a variety of investment strategies to manage portfolios effectively. Common strategies include active management, where fund managers make specific investments to outperform the market, and passive management, which involves tracking a market index. Other strategies might involve sector rotation, where investments are shifted between sectors based on market conditions, or asset allocation, adjusting the mix of stocks, bonds, and other securities to optimize risk and return.

What should I keep in mind while evaluating detailed profiles of AMCs?

When evaluating detailed profiles of AMCs, focus on their track record, management team experience, investment process, and risk management practices. Consider the transparency of their investment decisions and their client service quality. Also, review the performance of their funds during different market phases to understand how they handle market volatility.

Are there any fees or charges associated with investing in AMC products?

Yes, investing in AMC products typically involves various fees and charges. Common fees include management fees, which are charged for the day-to-day management of the fund, and performance fees, which may apply if the fund outperforms certain benchmarks. Investors might also encounter entry loads or exit loads, as well as ongoing costs like fund operating expenses.

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