The AMC full form in shares market is Asset Management Company. AMC is an entity which invests the funds from its customers. They also put this money to use by investing it in a variety of partnerships, bonds real estate investments etc. AMCs can also manage hedge funds of people who have a high net worth.
What does AMCs perform?
Asset management firms are called money managers. They help investors understand the various investment options. They take money from their customers and invest them in different securities and assets. They also conduct a rigorous market analysis by studying the patterns and formulating projections. They are paid in the form of a percentage of assets of clients they manage.
What is the Asset Management Company function?
The AMC will take funds from various investors who have various financial goals. It will put these funds into an investment portfolio that is diverse. They also will benefit from economies of scale by purchasing and discounts. The profits they earn from their portfolios will be divided among the smaller retail investors. The fees they earn are in proportion to the services they offer to manage the fund. They pay their fees every month or on an annual basis.
