An Asset Management Company is a fund house which manages a pool of funds (collected from investors) with the objective of maximizing the returns. It designs diversified portfolios and invests across multiple asset categories such as stocks, bonds, etc. Investors benefit from the professional expertise of such companies and are able to get exposure to a well-designed and diversified portfolio of funds. The AMCs float the mutual funds for investors to invest.

For example, HDFC Asset Management Company has multiple mutual funds for investors to buy like HDFC Equity Fund, HDFC Top 100 Fund, HDFC Income Fund, HDFC TaxSaver Fund, etc. Likewise, other AMCs like Franklin Templeton Asset Management Company has various funds like Franklin India Bluechip Fund, Franklin India Prima Fund, Franklin India Prima Plus Fund, etc.