What is an AUM fee?

An AUM fee is a charge based on the account balances your advisor manages. In most cases, the advisor directly manages assets, chooses what to buy and sell, and handles trades on your behalf. You typically do not place trades.

Are there alternatives to the assets under management (AUM) fee?

That’s what investors are asking as they consider alternatives to the assets under management (AUM) fee a lot of financial advisers charge. The AUM fee model bills clients an annual ongoing fee for financial advisory services based on a percentage of the total amount of assets the adviser manages for the client.

What is an assets-under-management (AUM) fee?

An assets-under-management (AUM) fee is a billing method based on the amount of assets you have with a financial advisor. This approach is popular with asset management firms, but other forms of compensation are available. For example, some advisors charge flat fees for service or hourly fees.