Role of the AMC

Role of the AMC

An asset management company is a company registered under the Companies Act, 1956. The Sponsor creates the asset management company and this is the entity, which manages the funds of the mutual fund (trust). The mutual fund pays a small fee to the AMC for management of its fund. The AMC acts under the supervision of Trustees and is subject to the regulations of SEBI.

Trustees appoint the Asset Management Company as the Investment Manager of the Trust, on the recommendation of sponsor. Trustees are authorized to appoint AMC as per the trust deed .The trustees enter into an agreement with the AMC known as ‘Investment Management Agreement’, which contains all the functions, duties and rights of the AMC as an Investment Manager.