Assets under management (AUM) is the total market value of the investments managed by a person or entity on behalf of investors. AUM fluctuates to reflect the flow of money in and out of a fund and the price performance of the assets. A fund's management fees and expenses are often calculated as a percentage of AUM.
What is Aum in mutual funds?
AUM is the sum of the market value for all of the investments managed by a fund or family of funds, a venture capital firm, a brokerage company, or an individual registered as an investment advisor or portfolio manager. When an investor has $50,000 in a mutual fund, those funds are part of the total AUM of the pool of funds.
How do financial institutions calculate assets under management (AUM)?
When calculating AUM, some financial institutions include bank deposits, mutual funds, and cash, while others limit it to funds under discretionary management from individual investors. Assets under management (AUM) is the total market value of the investments managed by a person or entity on behalf of investors.
