What is the Full Form of AMC in the Share Market?

The AMC full form in the share market is Asset Management Company. AMC is an organization that invests the collected funds from the clients. It also puts this capital to work by investing the same in different bonds, stocks, partnerships, real estate investments, etc. AMCs can also manage the hedge funds of individuals with high net worth.

What do AMCs do?

Asset management companies are also referred to as money managers. They educate investors about investment options. They will collect funds from the clients and invest them in different assets and securities. They also perform stringent market analysis by analyzing the trends and drafting projections. They will get their compensation as a percentage of the assets of the clients that they are managing.

How does an Asset Management Company function?

The AMC will collect money from different investors having different financial objectives. It will now invest these funds in a diversified portfolio. They will also enjoy great economies of scale through purchases and discounts. The returns that they gain from their portfolio will then be distributed among the small retail investors. They gain their fees based on the service they render for maintaining the fund. The fees are paid either monthly or on a quarterly basis.