Assets Under Management Latest News
The asset under management (AUM) of India’s mutual fund (MF) industry was estimated at ₹74.40 lakh crore, marking a more than sevenfold growth in 10 years, according to a recent report.
About Assets Under Management
- AUM is a crucial metric in the financial industry, particularly in mutual funds.Â
- AUM refers to the total market value of the assets that a financial institution or investment company manages on behalf of its clients.Â
- These assets can include stocks, bonds, and other financial investments.
- AUM is affected by:
- Market fluctuations
- Net investor inflows (new investments)
- Redemptions or withdrawals
- Dividend reinvestments
- AUM is an essential measure of the size and success of a mutual fund, as it provides investors with insight into the fund's popularity and credibility.Â
- It also indicates the financial institution's expertise and ability to attract and retain clients.Â
- Additionally, investors often use AUM to assess the fund's liquidity and stability.Â
- The larger the AUM, the more resources and diversification potential the fund may have, which can attract investors seeking long-term growth and stability.
- A mutual fund’s AUM can have a large impact on the fees that an investor usually pays to invest in the mutual fund. For example, some larger funds might have a very high minimum investment.
Source: TH
Assets Under Management FAQs
Q1: What is Assets Under Management (AUM)?
Ans: AUM is the total market value of the assets that a financial institution or investment company manages on behalf of its clients.
Q2: Why do investors often consider Assets Under Management (AUM) when selecting a mutual fund?
Ans: It reflects the fund’s popularity, expertise, and stability.
Q3: How does Assets Under Management (AUM) impact investor fees in a mutual fund?
Ans: Larger AUM funds may have high minimum investment requirements.