Mutual FundsBeginner
AUM
Assets Under Management
The total market value of all the money a fund or manager currently manages.
Detailed explanation
AUM moves with both investor flows and market performance. It is a size measure, not a quality measure — a large AUM can bring economies of scale in a large-cap fund but can hurt a small-cap fund whose ideas have limited liquidity.
Example
A scheme with 4 crore units at a NAV of ₹124.50 has an AUM of ₹498 crore.
Why it matters
AUM affects the expense ratio a fund can charge and how nimble the manager can be.
Key points
- Grows from inflows and from market appreciation.
- Very large small-cap funds may struggle to exit positions quickly.
- Used as the denominator for the expense ratio.
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.