Sowmya Sivakumar on LinkedIn: Difference between AMC SIP and SIP? Basically both are same except - In… (2024)

Q. “How to AMC'S earn money?”A.AMC = Asset Management Company.Any company that takes money from customers and invests it for them is called an AMC.Mutual fund companies are also AMCs.How do they make money?By charging a fee for managing investors’ money.In the case of mutual funds, you will see each mutual fund has something called ‘expense ratio’.Example: XYZ large cap mutual fund’s expense ratio is 0.5%.This means, 0.5% of the amount you invested will be the AMC’s fee (per annum).And this 0.5% per annum is charged every day (0.5% divided by 365 = 0.0014%)So in this case, 0.0014% out of the latest value of your investment is taken as the expense ratio every day.Do note, that the expense ratio is charged to the investment’s latest value - not the original investment value.Every mutual fund’s expense ratio is different.This is how AMCs earn money..PS - Got this awesome message in the Email. Thought of sharing Here..😎.#fundmanagement #financialliteracy #personalfinance #financialfreedom #assetmanagement #amc #linkedin #linkedincontent

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If you invest in a mutual fund but only check the funds & not the AMC( asset management company ) / fund manager, then you are doing it wrong.3 things to look into before you choose a fund.✅Performance of a fund You could verify this by checking its performance in the market in the last 5 to 10 years. Go through the annual reports of schemes and AMC and compliance reports to SEBI, AMFI, and RBI.✅Fund Manager's track record and investing style Don't stop your research only till AMC. Work progress or report of the fund manager must be verified before you begin your investment. The simple reason is that fund performance works in parallel with its fund manager and investing style ✅ChargesWhat is TER (Total Expense ratio ) of fund - Higher expense ratio will have an impact on returns , it does not necessarily mean all funds with higher expense ratio are bad Awareness is the 1st step to making a suitable investment, and knowing the facts will help you not fall for the fraudulent practices prevalent in the market today.Understand that AMC has a massive responsibility of collecting investments from different investors, making a pool of funds collected and investing in a diversified portfolio. And with huge money comes great power & responsibility too to make it work properly.#finance #mutualfund #wealthmanagement

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Lets talk Mutual Funds!!!Do you know that expense ratio is collected by AMCs on daily basis???🥲The fee that Mutual Fund charges to manage your investment is called Total Expense Ratio.Now, why would an AMC charge a fee?🤔Well, there are real expenses involved in managing a fund...👉🏼Fees paid to Custodian and RTA 👉🏼Brokerage paid to broker 👉🏼Employee cost👉🏼Marketing campaign cost As a mutual fund investor, you need to know a few things👉🏼How much is the fee?👉🏼How does a mutual fund collect fee?👉🏼How can we save this fees?📌I have explained with the help of a simple example on how does an AMC collects fees on daily basis in the attached template.🥳🥳Follow me (Abhishek Singh) for more such content.😇#mutualfunds #expenseratio #personalfinance #finance

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What is an AMC in Mutual Funds? | Simplified ExplanationEver wondered what an AMC (Asset Management Company) is when it comes to mutual funds? 🤔 In this video, we break it down for you in simple terms.📌 Watch and learn how AMCs are like the captains of your investment ship, making critical decisions to help your money grow. Plus, we'll tell you why choosing the right AMC is crucial.💼 Whether you're a seasoned investor or just starting, this quick guide will help you understand the basics. Don't forget to like and subscribe for more financial insights!#MutualFunds #Investing #AMCExplained #FinancialEducation #MoneyMatters #InvestmentTips #GrowYourMoney #FinanceSimplified #easyfinance #AssetManagementCompany #AMCExplained #FinancialEducation #InvestmentTips #GrowYourMoney #InvestmentBasics #moneymanagement #AMCMutualFunds #AaravInvestments #personalfinanceabhi

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SEBI to alter Total Expense Ratio for AMCsSecurities and Exchange Board of India (SEBI) is all set to alter Total Expense Ratio (TER) proposal for asset management companies (AMCs). On Wednesday, in SEBI Board has advised SEBI to go back and publish another consultation paper, based on the data received.Currently, mutual funds are allowed to charge a number of operating costs, including sales and marketing, advertising, and administrative costs, as well as investment management, registrar, custodian, and audit fees. The total expense ratio, which is used to refer to all such expenses, is calculated as a percentage of the NAV of the scheme as a whole.Earlier in May, SEBI had suggested setting TER slabs at the AMC level for fee caps for equity schemes are 2.55 percent for the first AUM slab of Rs 2,500 crore and are different for equity-based and non-equity-based AUM. It would be 2.45% for the subsequent 2500 crores, and so forth. Due to SEBI's TER announcement, AMC stocks had been underperforming in recent months.However, investors cheered with the SEBI’s assurance of releasing a new draft which is anticipated to placate the mutual fund industry, caused investor mood to change for the better. Currently, most of AMC stocks were in limelight with HDFC Asset Management Company (+11.55%), Nippon Life India Asset Management (+18%), UTI Asset Management Company (+8%) among others.

Mutual fund distributors will now have the opportunity to receive trail commissions from Asset Management Companies (AMCs) for assets transferred by an investor from one distributor to another.Check out the full story : https://lnkd.in/gaB397_g#mutualfund #MutualFundDistributors #amcs #TrailCommissions #arn #amfi #InvestorAssets #Transfer #MarketPractices #bizzbuzz

direct mutual fund scheme 🆚 regular mutual funds scheme. what is difference? I am explain in below, let's check out. 👇direct scheme : Direct Mutual Funds is the type of mutual fund that is directly offered by the AMC or fund house. In other words, there is no involvement of third party agents – brokers or distributors. Since there are no third party agents involved, there are no commissions and brokerage. due to absence of third party, expenses ratio of this kind mutual fund is low. Regular plan scheme : Regular plans are those mutual fund plans that are bought through an intermediary. These intermediaries can be brokers, advisors, or distributors. The intermediaries charge the fund house a certain fee for selling their mutual funds. higher expense ratio. (https://lnkd.in/dhusKr5s) #mutualfunds #stockmarket #invest

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All Mutual Fund Schemes offer two plans- Direct and Regular. In a Direct Plan, an investor has to invest directly with the AMC, with no distributor to facilitate the transaction. In a Regular Plan, the investor invests through an intermediary such as distributor, broker or banker who is paid a distribution fee by the AMC, which is charged to the plan.Therefore, the direct plan has a lower expense ratio as there is no distribution fee involved, while the regular plan has a slightly higher expense ratio to account for the commission paid to a distributor to facilitate the transaction.

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20 Days of Mutual Funds (9/20)-Redemption LifecycleWhat happens behind the scenes when you sell a mutual fund?Here's how the process typically unfolds:1. Placement of Sell Order: As an investor, you submit a sell order through your chosen platform. You specify the number of units or the amount you wish to redeem from the mutual fund.2. Transmission to RTA: The platform forwards your sell order to the RTA or directly to the AMC for processing. If the platform has an electronic interface with the RTA, the order may be transmitted electronically.3. Processing by RTA: Upon receiving the sell order, the RTA verifies the investor's details(available units) and processes the redemption request. The redemption is typically executed at the prevailing NAV (Net Asset Value) of the mutual fund on the transaction day depending on when the RTA receives the request4. Unit Redemption: The investor's units are redeemed from the mutual fund based on the number of units specified in the sell order. The corresponding value of the redeemed units is calculated based on the NAV applicable on the redemption day.5. Payment Processing: If the redemption proceeds are to be paid out to the investor, the AMC or RTA initiates the payment process. The redemption proceeds may be disbursed through various payment modes, such as direct credit to the investor's bank account or issuance of a cheque.6. Investor Account Update: The RTA updates the investor's account to reflect the redemption of units and the corresponding decrease in the portfolio holdings. The investor may receive a confirmation statement detailing the redemption transaction and the amount received.#mutualfunds #investments #money #finance #marketing

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PMS vs Mutual FundDSP Mutual Fund has aptly explained the difference betwen holding an equity mutual fund vs PMS💡The minimum investment amount in PMS is Rs. 50 lakhs which will be invested in a single equity strategy unlike in mutual fund where minimum investment requirement is very low and has better diversification options.👍🏾For retail investors it would be prudent to invest in mutual funds as diversification is possbile through exposure in funds ranging across large, mid or smallcap or even in sectoral funds.#ndkapita #mutualfundssahihai #pms

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