AUM in mutual Funds | Mutual Funds Terminologies

AUM is the total market value of all the assets managed by a mutual fund. It includes the value of all the investments held by the fund, as well as any cash or other assets that the fund holds. AUM is typically calculated daily.

The asset under management (AUM) is the total market value of all the investments that a mutual fund manages. It is calculated by multiplying the NAV by the number of outstanding shares in the fund.

(NAV (Net Asset Value) is the current market value of all the assets held by a mutual fund, divided by the number of shares outstanding. It is a measure of the worth of each share of the fund )

For example, if a mutual fund has a NAV of ₹100 per share and there are 10,000 shares outstanding, then the AUM would be ₹10,00,000

AUM is an important measure of the size of a mutual fund. It can also be used to compare the performance of different funds. A fund with a higher AUM generally has more assets to invest, which can give it more flexibility and potentially lead to higher returns.

However, this is not the only metric to consider when deciding which mutual fund to invest in. If you want to learn more about all the factors you need to consider before buying a mutual fund