Glossary
Assets Under Management (AUM)
Assets Under Management (AUM) refers to the total market value of the investments a financial advisor or investment firm manages on behalf of clients. It includes all assets such as cash, stocks, bonds, and mutual funds that are actively managed.
What does a high AUM indicate?
A high AUM typically suggests that the firm or advisor manages large amounts of client money, which may indicate experience and client trust.
Is AUM the same as net worth?
No, AUM refers to client assets managed by a firm, while net worth refers to an individual's total personal assets minus liabilities.
Does AUM affect advisory fees?
Yes, many financial advisors charge fees based on a percentage of AUM, so higher AUM can result in higher total fees but often lower fee percentages.
Can AUM fluctuate?
Yes, AUM can change daily based on market performance, client deposits, or withdrawals.
What does AUM mean in finance?
In finance, AUM stands for Assets Under Management and represents the total value of money and investments an advisor handles for clients.
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