Asset Management Companies in India – Growing Financial Inclusion boosting Investment Companies (Complete List,AUM,Industry)

What is Asset Management

The practice of managing assets so that the greatest return is achieved. Asset Management is a systematic process of operating , maintaining, and upgrading assets cost-effectively. Asset management can be defined as the professional management of investments such as stocks and bonds. The services of a professional firm is expensive and successful asset management usually requires a large and diverse portfolio. Asset management services are often handled by a team of financial professionals.

Asset Management in India

Asset Management Companies in India have come a long way since the preliberalization era when  only the government owned Unit Trust of India was the sole option for Indian investors.Like the other Finance Companies in India,Investment Management Companies too have grown massively in size as  well as numbers.The massive Indian market which is still quite primitive in terms of financial inclusion has attracted a host of domestic  and foreign investment companies.Only 4–5 per cent of household assets are in mutual funds and the top eight cities in terms of households penetrated account for 75 per cent of retail AUMs.there are only about 35 fund ‘families’ in India, as compared to the global numbers like 700-odd fund ‘families’ in the US, 60 fund ‘families’ in China and around 70 in Japan.The Lehman crisis took a toll on the weaker asset managers but the industry continues to thrive as modernization of the Indian economy will lead to a transfer of asset from the informal sector to the formal sector.The Total Assets under Management in India as of June 2011 stands at  Rs 7.43 lakh crore ($160 billion).The industry has 43 active players with Reliance MF being the largest investment company in India followed by  HDFC MF.

The Top Asset Management companies in India are:

1. UTI Asset Management Co. Ltd. – UTI Asset Management Co. Ltd. (UTIAMC) is a company incorporated under The Companies Act, 1956. It came into existence in 2002, as the Asset Management Company of the UTI Mutual Fund. The paid up capital of UTIAMC has been subscribed by four sponsors: State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank. UTIAMC, apart from managing the schemes of UTI Mutual Fund, also manages the schemes transferred/migrated from the erstwhile Unit Trust of India.
2. Reliance Capital Asset Management Ltd. –  It is one of India’s leading and amongst most valuable financial services companies in the private sector. Reliance Capital Asset Management Limited, a wholly owned subsidiary of Reliance Capital Limited, acts as the AMC to the Reliance Mutual fund. Reliance Capital has interests in asset management and mutual funds; life and general insurance; commercial finance; stock broking; investment banking; wealth management services; distribution of financial products; exchanges; private equity; asset reconstruction; proprietary investments and other activities in financial services. Reliance Capital has a net worth of Rs. 7,810 crore and total assets of Rs. 31,994 crore  as on March 31, 2011.
3. SBI Funds Management Pvt. Ltd. –  SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country. SBI Funds Management Pvt. Ltd. is a joint venture between ‘The State Bank of India’ and Société Générale Asset Management (France), one of the world’s leading fund management companies. SBI Funds management manages over Rs 38,782 crores of assets and has a diverse profile of investors making their investments. In 20 years of operation, the fund has launched 38 schemes with consistent returns.
4. HDFC Asset Management Co. Ltd. – was incorporated in 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI. In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.169 crore. The shareholding pattern is Housing Development Finance Corporation Limited 59.98%, Standard Life Investments Limited 39.99% & Other Shareholders 0.03%. The AMC also provides portfolio management / advisory services and activities are not in conflict with those of the Mutual Fund.
5. ICICI Prudential Asset Management Co. Ltd. – is a privately owned investment manager. ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank & Prudential Plc, one of the United Kingdom’s largest players in the financial services sectors. It manages separate client-focused equity, fixed income, and balanced mutual funds. As an Asset Management Company, the company has over 15 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual funds and a wide range of PMS Products for its investors, spread across the country.
6. Franklin Templeton Asset Management (India) Pvt. Ltd. – Franklin Templeton which is one of the biggest Global Asset Managers has a major presence in India as well.It is one of the oldest players in the India.
7. Birla Sun Life Asset Management Co. Ltd. – is the investment manager of Birla Sun Life Mutual Fund. The Fund offers an array of savings and investment products for its individual, corporate and institutional investors and also manages two offshore funds. The fund house  had an average assets of over Rs.65,000 crore including offshore funds (as on 31 March 2010). It is  ranked amongst the top five asset management companies in the country.
8. Sundaram BNP Paribas Asset management Co. Ltd. –  is a privately owned investment manager, being a joint venture between Sundaram Finance and French bank BNP Paribas. It invests in the public equity and fixed income markets of India. The firm employs fundamental and quantitative analysis stock picking & in-house and external research to make its investments. The average assets under management was Rs. 12,827 crores as on March 31,2008.
9. TATA Asset Management Ltd. – The company’s principal activity is to act as investment manager to the Tata Mutual Fund. It has a client base of over 1 million people.  The company manages funds across the entire risk-return basis. These include equity funds, balanced funds and debt funds.
10. DSP BlackRock Investment Managers Pvt. Ltd.- DSP BlackRock Mutual Fund was set up as a Trust and the sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd. (collectively) and BlackRock Inc. DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual Fund.It invests in variety of equity related, fixed income & hybrid schemes.

Besides the above Kotak has managed to carve a distinct niche despite not having any huge backers.

Complete List of Asset Management Companies

BANKS

Joint Ventures – Predominantly Indian

• Canara Robeco Asset Management Company Limited
• SBI Funds Management Private Limited
• Union KBC Asset Management Company Pvt. Ltd.

Joint Ventures – Predominantly Foreign

• –  Baroda Pioneer Asset Management Company Limited

Others

• –  IDBI Asset Management Ltd.
• –  UTI Asset Management Company Ltd

INSTITUTIONS

Joint Ventures – Predominantly Indian

• –  LIC NOMURA Mutual Fund Asset Management Company Limited

PRIVATE SECTOR

Indian

• –  Axis Asset Management Company Ltd.
• –  Benchmark Asset Management Company Pvt. Ltd. (bought by Goldman Sachs)
• –  Deutsche Asset Management (India) Pvt. Ltd.
• –  Edelweiss Asset Management Limited
• –  Escorts Asset Management Limited
• –  IDFC Asset Management Company Limited
• –  India Infoline Asset Management Co. Ltd.
• –  JM Financial Asset Management Private Limited
• –  Kotak Mahindra Asset Management Company Limited(KMAMCL)
• –  L&T Investment Management Limited
• –  Motilal Oswal Asset Management Company Limited
• –  Peerless Funds Management Co. Ltd.
• –  Quantum Asset Management Company Private Limited
• –  Reliance Capital Asset Management Ltd.
• –  Religare Asset Management Company Limited
• –  Sahara Asset Management Company Private Limited
• –  Sundaram Asset Management Company Limited
• –  Tata Asset Management Limited
• –  Taurus Asset Management Company Limited

Foreign

• –  AIG Global Asset Management Company (India) Pvt. Ltd.
• –  BNP Paribas Asset Management India Private Limited
• –  Daiwa Asset Management (India) Private Limited
• –  FIL Fund Management Private Limited
• –  Franklin Templeton Asset Management (India) Private Limited
• –  Goldman Sachs Asset Management (India) Private Limited
• –  Mirae Asset Global Investments (India) Pvt. Ltd.
• –  Pramerica Asset Managers Private Limited

Joint Ventures – Predominantly Indian

• –  Birla Sun Life Asset Management Company Limited
• –  DSP BlackRock Investment Managers Private Limited
• –  HDFC Asset Management Company Limited
• –  ICICI Prudential Asset Mgmt.Company Limited

Joint Ventures – Predominantly Foreign

• –  AEGON Asset Management Company Pvt. Ltd.
• –  Bharti AXA Investment Managers Private Limited
• –  HSBC Asset Management (India) Private Ltd.
• –  ING Investment Management (India) Pvt. Ltd.
• –  JPMorgan Asset Management India Pvt. Ltd.
• –  Morgan Stanley Investment Management Pvt.Ltd.
• –  Principal Pnb Asset Management Co. Pvt. Ltd.