An 'Asset Management Company
' is an investment management
firm that invests the pooled funds of retail investors in securities
in line with the stated investment objectives. For a fee, the investment company provides more diversification
, and professional management consulting
service than is normally available to individual investors.
The diversification of portfolio is done by investing in such securities which are inversely correlated to each other. They collect money from investors by way of floating various mutual fund schemes.