Asked by: Nixon Thillenspersonal finance mutual funds
What is AUM in mutual fund?
Last Updated: 14th May, 2020
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Considering this, what is the meaning of AUM in mutual fund?
Assets under management (AUM) refers tothe total market value of investments managed by a mutualfund, money management firm, hedge fund, portfoliomanager, or other financial services company.
One may also ask, how AUM is calculated? Assets under management is the total market valueof all securities portfolios for which an asset manager providescontinuous and regular supervisory or management services. Sincethe value of most financial assets changes on a daily basis, theAUM for an investment manager also changesdaily.
In this way, how does AUM affect mutual funds?
AUM and market movements Lesser value generally means lower fees. For instance,say, a 100 investors have cumulatively invested Rs. 10,000 in amutual fund that has earned 10% returns. In a nutshell,AUM is a good way to assess a fund's popularity andperformance. But it shouldn't affect your decision to investor not.
Is NAV and AUM the same thing?
And, Net Asset Value (NAV) is Rs 10 (AUM divided by the total number of units of the scheme. Thisis the formula to calculate the NAV). So, in one year thevalue of a unit of the scheme has increased from Rs. 10 to Rs. 20.This, the value of each unit of the scheme isNAV.