What is an AMC?

What is an AMC?

Every Mutual Fund is part of an initiative offered by an organization which we call an Asset Management Company (AMC). You can find their centers easily on the web, if you go to their web sites. An example of an AMC - Reliance Capital Asset Management. You can approach their centres directly and fill up the scheme forms and pay the cheque amount or you could go through an online brokerage like ICICIDirect, where there is no paperwork and the entire transaction can be done online. Only, you have to bear with the 2.25% entry load that will be deducted from your investment.

Asset Management Company - [AMC] - A company that invests its clients' pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves.
AMCs offer their clients more diversification because they have a larger pool of resources than the individual investor. Pooling assets together and paying out proportional returns allows investors to avoid minimum investment requirements often required when purchasing securities on their own, as well as the ability to invest in a larger set of securities with a smaller investment.
Source - www.investopedia.com