What is assets under management (AUM)?

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.

Does the size of Aum indicate a fund's performance?

The size of AUM does not necessarily indicate a fund’s performance. It is important to note that high assets under management (AUM) do not necessarily translate into higher returns. The fund’s performance is largely determined by the skill of the portfolio manager.

What do you need to know about assets under management?

What you need to know about assets under management. The way AUM is calculated varies from one company to another. Some financial institutions include bank deposits, cash and mutual funds in their totals, while others just concentrate on the investments run by fund managers on clients’ behalf.

What is an investor's Aum & why is it important?

An investor’s AUM may coincide with their net worth and may determine the type of services received from a financial advisor or brokerage company. Investors often consider higher investment inflows and higher AUM of a financial institution as positive indicators of quality and management experience.