Today in this article we are going to cover the overview of AMC SIP in India. Before understanding it let’s break into small terms to understand the context of the topic. Well, many investors wish to grow their money but lack sound knowledge of stock markets and financial instruments. By investing in those avenues’ investors can easily achieve their goals. This is when an Asset Management Company (AMC) comes into the picture. Having expert advice in your financial decisions is always a good idea to achieve your goal smartly.
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What is AMC & SIP in India?
The asset management company is a firm that pools funds from individual and institutional investors. Park those funds in varied investment options such as equity, debt, bonds, real estate, gold, etc as per the objective outlined by the respective mutual fund scheme. Most importantly, these schemes are managed by financial experts known as fund managers who are bestowed with finance acumen. Moreover, every fund manager has its style of leading a fund to try to beat its competitors and their benchmark indexes.
On the other hand, Systematic Investment Plans are designed to inculcate a saving habit among the investors to park their fixed amount of saving each month or quarter instead of making a lump-sum investment in their preferred mutual fund scheme. Therefore, these baby steps towards investing steadily can easily meet your financial goals.
Investment via a SIP route lets you invest a fixed sum of money over a given period. With this amount, you can purchase certain units in your preferred fund at prevailing NAV. If you remain invested for a long time, you get an opportunity to invest in the fund during the highs and lows. In other words, you don’t need to time the market as the constant fluctuations will average out the highs and lows. Market timing can be a risky concept as one can invest at the wrong time. As a result, SIP investments remove this factor of uncertainties.
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Top 5 AMC in India
Let’s check out the top 5 AMCs’ in India basis their asset under management and the number of schemes beating the benchmarks:
| AMC Name | AUM (in Cr.) | QOQ Change (in Cr.) | QOQ Change % | Total no. of schemes | No./% of scheme beating the benchmark |
|---|---|---|---|---|---|
| SBI Mutual Fund | 579318.28 | -55002.00 | -9.49135107 | 135 | 107/79.26 |
| ICICI Prudential Mutual Fund | 461288.78 | -32060.17 | -6.95132106 | 138 | 106/80.30 |
| HDFC Mutual Fund | 441851.58 | -22904.41 | -5.187868 | 78 | 68/87.18 |
| Birla Sun Life Mutual Fund | 299381.69 | -23477.64 | -7.8411290 | 112 | 90/80.36 |
| Kotak Mahindra Mutual Funds | 270615.37 | -22865.58 | -8.45 | 68 | 60/88.24 |
In short, we can sum up HDFC and Kotak are running the best AMC business among their peers as their scheme performing quite well in the market. The credit goes to their fund managers.
AMC SIP vs SIP in Zerodha
Zerodha is recognized as India’s Largest direct mutual fund platform. Helps in saving 1% of your invested amount every year which AMCs pay as commission to these online selling platforms and charge their investors in the name of Hidden Charges. Moreover, Zerodha provides the Coin app completely free of cost to their Demat account holder under the current free brokerage plan. Now all your investments on Zerodha Coin, irrespective of the invested amount, are free. In addition, No subscription charges whatsoever.
Let’s understand the Zerodha coin app’s offering to their customers in the mutual fund segment:
| Regular SIP | AMC SIP |
|---|---|
| As a normal sip, you can create a sip via the coin app | Zerodha just provide the interface to invest directly in respective AMC fund choosing SIP option |
| Customers have full control over SIP attributes like SIP pause, resume, deletion, step-up, etc | As it’s not created internally at Zerodha hence the customer cannot exercise these rights of pausing, resuming, deletion, stepping up, etc. |
| You can choose any amounts as per dropdown | Min sip amount is specified by the AMC itself |
| Initial Investment is needed to start the SIP option | No initial investment is needed to start AMC SIP. |
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How to Apply AMC SIP in Zerodha
To apply AMC SIP via Zerodha as discussed the customer should hold a Zerodha account cum Demat account. This coin app benefit applies only to their existing customers to explore the mutual fund’s segment.
Time needed: 5 minutes
Here are the steps for creating AMC SIP:
- COIN App
Visit the play store on your mobile, search for COIN App powered by Zerodha, or can use the WebUI option by clicking on this link: https://coin.zerodha.com/.
- Login
Click on the Login option on the right-hand corner of the window and it will redirect to Kite Zerodha App.
- Credentials
Sign in with your existing credentials and authorize your details on Coin App.
- Mutual Funds
Under Dashboard options, you can click on the tab of Mutual funds or Investment.
Click on explore option and search for the mutual fund’s scheme you looking for investment. - SIP option
Select the preferred fund of your choice of investment. Click on the SIP option at the bottom of the screen.
- Investment
Tick on the no initial investment box. Choose the frequency, amount, and date.
- AMC SIP
Proceed with creating the AMC option.
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Frequently Asked Questions
In case you’d like to delete or cancel your SIP, it can be done only 2 days before the SIP’s next installment date.
Login to your coin app, choose the fund you wish to redeem, and proceed with no of units you want to redeem then click redeem button.
You cannot pause AMC SIP via coin app instead you need to contact the respective AMC to exercise this right and need to abide by their terms & conditions concerning the pause option.
Depends on the preferred fund terms and conditions outlined by AMC for the lock-in period.