AUM (Assets Under Management) — Mutual Fund Term Explained

The total market value of all assets managed by a mutual fund scheme or AMC. A key indicator of fund scale.

Assets Under Management (AUM) is the total market value of all investments held by a mutual fund scheme. Changes daily as market prices move and as investors buy or redeem.

Very large AUM can make it harder to deploy money efficiently in mid and small cap stocks.

Formula

AUM = NAV × Number of Outstanding Units

Related terms

• NAV (Net Asset Value) — The price of one unit of a mutual fund, calculated daily from portfolio value minus liabilities divided by units outstanding.
• Expense Ratio — The annual fee charged by a mutual fund as a % of AUM. Covers management fees, operational costs and commissions. Deducted daily from NAV.
• AMC (Asset Management Company) — The company that manages mutual fund schemes — like HDFC AMC, SBI Funds, Nippon India MF. SEBI-regulated.

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