How important is an AMC (Asset Management Company) behind a mutual fund?
AMC controls the operations and functioning of a mutual fund. It is very important role in the performance of a mutual fund, as it decides on the style of functioning, people who are going to manage the funds, the commitment to service quality and overall supervision Why do Mutual Funds come out with different schemes? Different investors have different investment objectives. Some want to be invested for a long term while some for short term. On the other hand, some want to take high risk and some do not want to take even a little risk. A Mutual Fund may not be able to meet investment objectives of the all investors through just one fund. Hence, the Mutual Fund comes out with different schemes, each with a different investment objective. Does higher return necessarily mean a better fund? Yes, on the face of it high return does indicate good fund but there is also some risk taken by the scheme to achieve these returns. Thus it is sensible to measure risk also while considering returns t
