What is Asset Management Companies (AMC)
An Asset Management Companies (AMC) is a company that invests its clients' pooled funds into securities that match declared financial objectives. Asset Management Companies provide investors with more diversification and investing options than they would have by themselves. AMCs manage mutual funds, hedge funds and pension plans, and these companies earn income by charging service fees or commissions to their clients. Asset Management Companies (AMC) offer their clients diversification because they have a larger pool of resources than the individual investor could access on his own. Pooling assets together and paying out proportional returns allow 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. In some cases, AMCs charge their investors set fees. In other cases, these companies charge a percentage of the total assets under managem...