Asset management companies in India are generally classified into three types: bank-sponsored mutual funds, mutual fund institutions, and the private sector mutual funds. As of today (February 2017), there are a total of 44 asset management companies in India. Of these, 35 AMCs are private sector companies.
All asset management companies are part of the Association of Mutual Funds in India (AMFI). AMFI was incorporated in 1995 as a non-profit organization of all registered AMCs in India.
Popular AMCs in India
Since the establishment of mutual funds by the UTI Act of Parliament in 1963, the industry has been undergoing a significant development to enter its current position. The arrival of the public sector after the entry of the private sector marked essential stages in the history of the mutual fund industry.
In 1987, the public sector joined the mutual-fund business. The SBI Mutual Fund, established in June 1987, is the oldest AMC controlled by the public sector. SBI Mutual Fund has a rich history of over 25 years and a solid track record. In September 2016, SBI Mutual Fund’s total assets under management (AUM) had been reported to be more than INR 1,31,647 crore.
Kothari Pioneer was the first private sector operated by AMC to enter the mutual fund market in 1993 (now merged with Franklin Templeton) has been in business for over two decades. Franklin Templeton has a total AUM of INR 74,576 crore, which was recorded in September 2016.
Many private-sector AMCs have entered the market of mutual funds over the years. HDFC Mutual Fund, one of the most popular mutual fund houses in India, was established in 2000. As of June 2016, the fund under the management of the HDFC Mutual Fund is more than INR 2,13,322 crore.
ICICI Prudential Mutual Fund was the top-performing AMC in terms of average AUM from June 2015 to June 2016. The total assets under the management of ICICI Prudential are INR 193,296 crore. This figure indicates a growth rate of 24 percent over the previous year.
Reliance Mutual Fund is one of the most renowned asset management firms in the country. Reliance AMC is spread across 179 cities in India, making it one of the fastest-growing mutual funds in the country. As of September 2016, Reliance Mutual Fund’s total assets under management are estimated to be over Rs 18,000 crore.
Birla Sun Life Asset Management Company (BSLAMC) is also one of India’s leading and widely recognized asset management firms. It is a joint venture between Sun Life Financial and Aditya Birla Group. The total assets under BSLAMC management in September 2016 have been stated to be INR 1,68,802 crore.
UTI Asset Management Company, established in 2002, is funded by four public sector companies, LIC India, State Bank of India, Bank of Baroda and Punjab National Bank. UTI Asset Management Company’s AUM estimated at INR 1,27,111 crore in September 2016.