AUM (Assets Under Management) is a financial term that represents the total market value of investments managed by an investment firm, hedge fund, mutual fund, or financial institution on behalf of its clients. This metric is a key indicator of the size and success of a fund or institution, reflecting its ability to attract and retain clients and manage their assets effectively. AUM includes all types of assets, such as stocks, bonds, real estate, and other securities. The value of AUM can fluctuate based on the performance of the investments, inflows and outflows of client funds, and market conditions. A higher AUM typically indicates greater influence and revenue potential for the management firm, as fees are often calculated as a percentage of the assets managed.
