What does AUM mean in money?

Asked by: Wilford Macejkovic  |  Last update: November 17, 2025
Score: 4.4/5 (36 votes)

Assets under management (AUM) is the total market value of the investments managed by a person or entity on behalf of investors. AUM fluctuates to reflect the flow of money in and out of a fund and the price performance of the assets. A fund's management fees and expenses are often calculated as a percentage of AUM.

Is high AUM good or bad?

The higher AUM indicate better investment inflow, quality and management experience on behalf of a fund house.

What is an example of AUM?

Example of AUM for a Mutual Fund

Let's suppose that the mutual fund's portfolio consists of $1.5B in stocks, $2B in government bonds, $1.5B in corporate bonds, and $1B in cash. The total value of the fund's assets under management will be $6B.

What is the purpose of AUM?

AUM (Also called Om) chanting is an ancient practice that is predominantly used for spiritual purposes in Hinduism, Buddhism, and Jainism. However, there is a growing interest in understanding its impact on not just spiritual development but also mental health.

What is the average monthly AUM?

Average Monthly AUM means the average of the assets under management (“AUM”) for the Reinsured Contracts for such month calculated as follows: Beginning Monthly AUM equals AUM for the Reinsured Contracts on the first calendar day of the applicable month Ending Monthly AUM equals AUM for the Reinsured Contracts on the ...

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What is the AUM of BlackRock?

BlackRock, Inc. is an American multinational investment company. Founded in 1988, initially as an enterprise risk management and fixed income institutional asset manager, BlackRock is the world's largest asset manager, with US$11.5 trillion in assets under management as of December 31, 2023.

What is the difference between AUM and fund size?

Fund size in mutual funds, also known as Assets Under Management (AUM), is the total value of all the assets that a mutual fund manages on behalf of its investors. This includes the capital invested by individual and institutional investors.

What is a good AUM fee?

How Much Do You Pay? The typical AUM fee is 1% on the first $1 million. Beyond that level, the cost typically drops as your household assets cross certain thresholds. Fees may be negotiable, and it's possible to discuss a cap on fees if you have a significant amount to invest.

What is a liquid fund?

Liquid funds are a type of Debt Mutual Funds that mainly invest in short-term debt securities, offering fixed returns. These securities typically include money market instruments like treasury bills, commercial paper, and certificates of deposits with maturities of up to 91 days.

Why is AUM so powerful?

Om or Aum is a beej mantra, a sacred sound, symbol, and Upanishad. Om serves as a sonic representation of the divine and is referred to as “Pranava” or the cosmic sound. It is said to encapsulate all of past, present, and future.

Is cash included in AUM?

When calculating AUM, some financial institutions include bank deposits, mutual funds, and cash, while others limit it to funds under discretionary management from individual investors.

How much funds does BlackRock manage?

Assets managed by BlackRock shot to $11.48 trillion in the period, compared with $9.10 trillion a year earlier and $10.65 trillion in the second quarter, the company said on Friday.

Is 2% fee high for a financial advisor?

Industry standards show that financial advisor fees generally range between 0.5% and 1.5% of AUM annually. Placement of a 2% fee may appear steep compared to this average. However, this fee might encompass more comprehensive services or cater to more unique, high-maintenance portfolios.

What is an ETF?

ETF stands for exchange-traded fund. ETFs contain groups of investments, such as stocks and bonds, often organized around a strategy, theme, or exposure. ETFs have become popular with investors in large part because many options, like index ETFs, provide a simple way to buy a diversified investment.

What is a good AUM for a financial advisor?

A typical advisor has $305 million in AUM, according to an analysis of SEC data conducted by the Investment Adviser Association (IAA). A “typical” advisor also has seven employees, and manages assets for: 363 individual clients. 14 institutional clients.

What does BlackRock actually do?

BlackRock is one of the world's leading providers of investment, advisory and risk management solutions. We are a fiduciary to our clients. We're investing for the future on behalf of our clients, inspiring our employees, and supporting our local communities. Watch the video to learn more.

Who owns BlackRock?

Who are BlackRock's largest shareholders? BlackRock, which has offered shares to the public since its 1999 IPO, is mostly owned by institutional investors, including the Vanguard Group, State Street Corp. (STT 0.01%), Bank of America (BAC 0.28%), and Temasek Holdings, a Singapore state-owned conglomerate.

What is the richest investment firm in the world?

  • BlackRock - AUM: $8.2 trillion. ...
  • Blackstone - AUM: $1.1 trillion. ...
  • Apollo Global Management - AUM: $600 billion. ...
  • KKR - AUM: $550 billion. ...
  • The Carlyle Group - AUM: $420 billion. ...
  • CVC Capital Partners - AUM: $180 billion. ...
  • TPG - AUM: $160 billion. ...
  • Thoma Bravo - AUM: $130 billion.

What are the disadvantages of a large AUM?

The AUM can have a direct impact on the fund's performance. If a fund is a large AUM, it might be challenging for it to generate high returns. This can happen because finding the right investment opportunities that help in earning more gains without hampering the market can be tough.