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) 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. 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 ... AUM stands for Asset Under Management is a key metric used in the finance industry to measure the total value of assets that an investment firm or financial advisor manages on behalf of clients. In this blog post, we will explain what AUM means, how it is calculated, and why it matters to various stakeholders, including investors, fund managers, and financial advisors. Now, let us learn the AUM meaning.
