I'm trying to understand what an asset under management example is. I'm looking for a clear explanation with a real-world scenario that illustrates how asset under management works.
7 answers
SamsungShineBrightnessRadianceGlitter
Mon Oct 28 2024
One prime example of AUM is a mutual fund company. These companies invest in a wide range of financial instruments including stocks, bonds, and other securities.
Maria
Mon Oct 28 2024
The primary responsibility of a mutual fund company is to manage these investments efficiently. They aim to provide optimal returns to their investors while minimizing risks.
AltcoinAdventurer
Mon Oct 28 2024
Suppose a mutual fund company has invested in various financial instruments with a total value of Rs. 500 crore. This value is calculated by summing up the market value of all the assets under the company's management.
alexander_jackson_athlete
Mon Oct 28 2024
Assets under management (AUM) represents the total value of financial assets that an investment company or institution manages on behalf of its clients.
KDramaLegend
Mon Oct 28 2024
The AUM of this mutual fund company would then be Rs. 500 crore. This figure serves as a crucial indicator of the company's size and influence in the investment industry.