The most obvious advantage of index funds is that in terms of total return, they have consistently outperformed other forms of products.One of the main reasons is that, because they are passively managed, they have substantially lower management fees than other funds. The index fund's portfolio simply replicates that of its specified index, rather than having a manager actively trading and a research staff researching stocks and making recommendations.Index funds have lower transaction costs because they hold investments until the index changes (which doesn't happen very often). Lower costs can have a significant impact on your profits, especially over time.Buffett noted in his 2014 shareholder letter, "Huge institutional investors, as a group, have long underperformed the naïve index-fund

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 man