The AMC
The manager who runs the schemes
The AMC is the name you see on the fund, so people assume it is in charge. It is not. It manages, under the trustees, under SEBI. Keep the chain straight and this scores well.
The ₹50 crore net worth and board rules are set by SEBI and can be revised. The full lesson shows the current figure with its source. Education for the NISM Series V-A exam, not financial advice.
- 1
The AMC (asset management company) runs the schemes day to day and makes the investment decisions.
- 2
The trustees appoint the AMC, and SEBI must approve it. The AMC works under the trustees' watch.
- 3
An AMC must maintain a minimum net worth of ₹50 crore, so it can stand behind its operations.
- 4
At least half of the AMC's board must be independent directors.
- 5
An AMC cannot act against unit holders' interest, and it cannot use scheme assets as its own.
The AMC is the kitchen. It cooks the meal (manages the money), but the trustees own the restaurant on your behalf and check the food is safe.
Practice
🔥 0 streakReal exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.
Who appoints the AMC?
The minimum net worth an AMC must maintain is:
What share of the AMC's board must be independent directors?
Day-to-day investment decisions for a scheme are made by:
Which is something an AMC must not do?
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Education for the exam, not financial advice. Answers can be wrong, so confirm figures against the workbook.