AUM meaning in mutual funds refers to the overall market value of all financial assets that an investment company or financial institution manages for its clients. 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 ... To begin, let’s tackle the main question head-on: What exactly is AUM? The full form of AUM is Assets Under Management. Plus, it is simply the total market value of all the investments that a particular mutual fund scheme is managing on behalf of all its investors.
