The total market value of all assets a fund house manages on behalf of its investors.
Assets Under Management (AUM) represents the total market value of investments managed by a fund house or an individual mutual fund scheme. It is reported monthly by AMFI and is a key measure of the fund house's scale and investor trust.
If a mutual fund scheme has 1 lakh investors who've collectively put in ₹5,000 crore, and the portfolio's current market value is ₹6,000 crore, the scheme's AUM is ₹6,000 crore. AUM changes daily with NAV movements and net inflows or outflows.
AUM is calculated as the sum of market values of all securities in a fund's portfolio plus cash holdings.
It fluctuates daily — upward with market gains and new investments, downward with market losses and redemptions.
AMFI publishes monthly AUM data for all fund houses and schemes.
A larger AUM generally indicates investor confidence, but for mid/small-cap funds, a very large AUM can limit the fund manager's flexibility.