Asset under management (AUM) is the total market value of the investment an organisation handles for its customers. These investments are managed by finds or family of funds, a brokerage firm, a venture capital firm or an individual registered as a portfolio manager or investment advisor.
Apart from this, the performance of the asset or fund, capital appreciation and reinvested dividends are other such factors which directly influences the value of AUM. If there is an increase in the customers and assets, there would be an increase in the total firm’s AUM. Asset under management is important as it defines the size and portfolio success of the organisation. Hence, it is essential for the investors to consider them before making any investment decision.