Aum: Understanding Asset under Management (AUM)

Understanding Asset under Management (AUM) Ever heard the term “Assets under Management” or AUM thrown around in the financial world and wondered what it truly means? You’re not alone! AUM is a crucial metric in the investment landscape, offering valuable insights into the size and success of investment firms, mutual funds, and even individual financial advisors. Let’s break it down and explore why it matters. What is Assets under Management (AUM)? At its core, Assets […] Assets Under Management (AUM) summarises the total value of funds managed by investment firms or professionals, having immense influence on investment strategies, market positions and investor decisions. Understanding AUM is crucial for investors and financial professionals, as it serves as a compass, guiding decisions in the world of investment management. This guide will explore the significance of AUM, dissecting its role in investment management and other related aspects. Significance of ... Assets under management (AUM), also referred to as funds under management, is the aggregate market value of all the investments managed by a financial institution. It is an important financial metric studied by investors before choosing their fund management institution. It also helps in the calculation of management fees. AUM is viewed concerning the net investment value of a specific client or all of the firm's clients. However, the latter is more prominent as it indicates the company's ... Assets Under Management (AUM) is the total market value of all investments managed by a financial entity, fund, or individual on behalf of clients. Think of it as the “total pool of money” that investors have entrusted to the fund.