![]() ![]() It is important to analyze the assets under management since it reflects the size and success of the company. It primarily depends on the fund houses these organizations prefer asset-rich companies as they are more favored amongst customers. Mutual Funds Assets Under Management holds significant weightage to affect its performance in the financial market. The funds that carry more assets are more liquid in nature. AUM usually fluctuates on a daily manner, showing the inflow and outflow of resources from the organizations that fund houses invest in. Fund houses calculate their fees as a percentage of the total assets under management. A higher AUM allows the fund manager to take harder calls in terms of entry and exit strategy for a particular investment. The value of the asset under management includes bank deposits, mutual funds, etc. A better performance would imply more assets under management but investors should not make this as a sole factor on which they should make the investment. Generally, the performance of the mutual fund is reflected by its asset under management. Post this, the fund managers can buy and sell shares following the fund’s investment objective using all of the invested funds which leads to capital appreciation. 1,00,000 in a mutual fund, those funds become part of the total AUM. In simple terms, it is the money that the mutual fund is handling for their clients/investors.įor example, if an investor has invested Rs. What is Assets Under Management in Mutual Funds?Īssets under management (AUM) is the total market value of the investments that are held by the Mutual Fund. What is Assets Under Management in Mutual Funds?. ![]()
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