Who Manages Your Money

When you invest in a mutual fund, multiple entities work together to protect and grow your money.

The AMC (Asset Management Company)

The AMC is the company that creates and manages mutual fund schemes. India has 44 AMCs:

Top AMCs by AUM (as of 2025):

SBI Mutual Fund — ₹10+ lakh crore
HDFC Mutual Fund — ₹7+ lakh crore
ICICI Prudential — ₹7+ lakh crore
Nippon India — ₹4+ lakh crore
Kotak Mahindra — ₹4+ lakh crore

The Fund Manager

The fund manager is the person who decides what to buy and sell within the fund. They:

Analyze companies, sectors, and macroeconomic trends
Build and maintain the portfolio
Decide position sizes (how much to invest in each stock)
Manage risk and ensure compliance with SEBI mandate

Does the fund manager matter? For actively managed funds, yes — a skilled manager can generate alpha (excess returns). For index funds, the manager's role is minimal since they just replicate the index.

SEBI's Protection

SEBI (Securities and Exchange Board of India) ensures:

Categorization rules — funds can't mislead about their strategy
Expense ratio caps — maximum fees funds can charge
Portfolio disclosure — funds must publish holdings monthly
Risk labeling — mandatory riskometer on all fund pages
Investor grievance — SCORES platform for complaints

Key Insight

Your money is NOT held by the AMC. It's held in a separate trust, managed by custodians. Even if the AMC goes bankrupt, your investments are safe because the trust is a legally separate entity.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns.