AUM represents the total market value of a mutual fund's assets and liabilities, indicating its size and growth.
Assets Under Management Example
If a fund company's total asset value across various investments is Rs 10 crores, its AUM is Rs 10 crores.
Importance Of AUM In Mutual Funds
AUM reflects fund success. In large-caps, high AUM indicates trust. In small-caps, it's less influential. For debt funds, higher AUM can lead to lower expense ratios.
How Does AUM Affect Mutual Funds?
Higher AUM can reduce the expense ratio, offer more fund management resources, influence investment style, and enhance diversification.
How To Calculate Aum In Mutual Fund?
AUM is the total value of fund investments, affected by inflows, outflows, and fund returns. It fluctuates and doesn't always indicate performance.
Top Asset Management Companies
Top AMCs in India by AUM include SBI, HDFC, ICICI Prudential, Nippon India, Axis, DSP BlackRock, Kotak Mahindra, IDFC, L&T, and TATA Mutual Fund.