What Does AUM (Assets Under Management) Mean?
The total market value of the investments that a person or entity manages on behalf of clients is known as assets under management (AUM). The criteria and formulas for assets under management differ from firm to company.
Some financial firms calculate AUM by including bank deposits, mutual funds, and cash in their computations. Others confine it to funds under discretionary management, in which the investor delegated trading authority to the company.
Overall, AUM is just one factor to consider when assessing a company or investment. It's also frequently taken into account alongside management performance and experience. Higher investment inflows and AUM comparisons, on the other hand, are frequently seen as a favorable indicator of quality and management experience by investors.
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