InvestmentFinancial Glossary
AUM (Assets Under Management)
Definition
The total market value of all investments managed by a mutual fund, portfolio management service, or financial institution. AUM is calculated by multiplying the number of units outstanding by the current NAV per unit.
Why It Matters
A fund's AUM indicates its size and investor confidence. Very large AUM in small-cap funds can limit agility, while very small AUM may indicate higher risk of scheme closure. For debt funds, larger AUM typically means better liquidity management.