Assets Under Management (AUM)

Assets Under Management (AUM) refers to the total market value of investments that a financial institution, such as a mutual fund or investment firm, manages on behalf of clients. AUM is an important measure because it reflects the size and health of the firm, influences management fees, and indicates investor confidence. For example, if a firm has $1 billion AUM, it means they are responsible for managing $1 billion in assets, which can include stocks, bonds, and other securities, for their clients. High AUM can signify trust and reputation in the market.