Which of the following statements about Asset Management Companies (AMCs) is true?

Asset Management Companies (AMCs) are financial institutions that manage and invest funds collected from individual and institutional investors. These funds are pooled together and invested in various financial instruments such as stocks, bonds, mutual funds, and other securities. AMCs are responsible for making investment decisions, portfolio management, and ensuring the growth and preservation of the investors' capital. They provide professional asset management services and aim to generate returns for investors based on their investment objectives and risk tolerance.