AUM: What it Means for Investors

The Full Form and Basic Meaning of AUM

AUM stands for Assets Under Management. The phrase itself is straightforward once broken down. 'Assets' refers to any item of economic value - in the context of mutual funds, this includes equity shares listed on the NSE or BSE, government bonds, corporate debentures, treasury bills, money market instruments, gold units, real estate investment trusts (REITs), infrastructure investment trusts (InvITs), and even cash kept in bank accounts. 'Under Management' means these assets are being actively or passively overseen by a professional fund manager or an automated index-tracking mechanism on behalf of investors.

So when a fund house reports an AUM of ₹80,000 crore, it means the combined market value of all the securities and cash held across all schemes managed by that fund house is ₹80,000 crore on the reporting date. This figure is not the total amount investors originally deposited; it is the current market value, which reflects all price changes since those investments were made.

It is worth distinguishing between scheme-level AUM and fund house-level AUM. At the scheme level, AUM tells you the size of one specific mutual fund - say, a large-cap equity fund or a liquid fund offered by a particular asset management company (AMC). At the fund house level, AUM represents the aggregate of all schemes run by that AMC. Industry-level AUM, published by AMFI every month, captures the combined AUM of every SEBI-registered AMC operating in India.

AUM is different from the number of unit holders or the number of folios a fund has. A fund can have a large number of small investors and still have a modest AUM, or it can have a relatively small number of institutional investors contributing a very large AUM. Both dimensions - the number of investors and the size of assets - are meaningful, but they tell you different things.

Another important distinction is between AUM and Net Asset Value (NAV). NAV is the per-unit price of a mutual fund scheme, calculated by dividing the total net assets by the number of outstanding units. AUM is the aggregate - the total net assets side of that equation before dividing. Both metrics are inter-related, but an investor looking at AUM sees the big picture of a fund's scale, while looking at NAV shows the per-unit book value on a given day.

Finally, it is important to appreciate that AUM is always a snapshot in time. Because the securities inside a mutual fund are marked to market every business day - meaning they are revalued at their current market prices - the AUM of any fund changes every single day the markets are open. AMFI provides daily AUM data at the scheme level, and monthly data at various category and fund house levels, giving investors and regulators a running account of how the industry is evolving.

How AUM is Calculated

The calculation of AUM is governed by a clear process under SEBI's mutual fund regulations and the guidelines issued by AMFI. Understanding this process helps you appreciate both the reliability and the limitations of the figure.

The starting point is the fund's portfolio - the list of all securities it holds. Each security is valued at its current market price. For equity shares listed on the NSE or BSE, this is the closing price of the security on the relevant exchange on the valuation date. For debt instruments such as government securities and corporate bonds, valuation is done using prices provided by agencies like CRISIL or ICRA, which act as valuation agencies under SEBI's framework. For money market instruments with short residual maturities, an accrual-based approach may be used. For unlisted or illiquid instruments, specific SEBI guidelines determine how they should be valued, often involving a more conservative approach.

Once every holding is valued, the total market value of all assets is computed. From this, liabilities are subtracted. Liabilities include accrued management fees (which accrue daily and are embedded in the expense ratio), pending redemption payments, outstanding payables to brokers, and any other amounts the fund owes. The result is the Net Assets of the scheme. This is the AUM at the scheme level on that particular day.

Formally: AUM = Total Market Value of All Assets − Total Liabilities

The number of outstanding units is tracked separately (and changes with daily purchases and redemptions). Dividing AUM by the number of outstanding units gives you the NAV per unit - the price at which new investors can buy into the fund or existing investors can redeem.

For a fund house managing multiple schemes, the total AUM is simply the sum of the AUM of all its schemes. If an AMC runs 25 schemes - equity, debt, hybrid, and so on - its total reported AUM is the aggregate of the daily net assets across all 25.

One nuance worth knowing: when an investor makes a fresh purchase in a scheme on Day 1, that money may not immediately be deployed into securities; it could sit as cash for a day or two. That cash balance is still counted as part of AUM. Similarly, when a redemption request is processed, the units are cancelled and the cash to be paid out is no longer part of AUM. These flows happen every business day, which is why AUM is a continuously moving number.

SEBI mandates that AMCs publish their scheme-wise AUM data on a daily basis through AMFI and on their own websites, ensuring transparency for investors. Monthly AUM disclosures at the category level allow analysts and researchers to track industry trends - for instance, how equity AUM relative to debt AUM has shifted over a quarter, or whether liquid funds see large institutional inflows at quarter-end.

For investors evaluating a fund, it is useful to track AUM changes over time rather than just looking at a single data point. A consistent upward trend in AUM (after adjusting for market returns) indicates steady net inflows - a sign that investors are choosing to add money to that scheme. A declining AUM even in a rising market may signal persistent outflows, which could be worth investigating.

AUM and Expense Ratio: The Cost Connection

One of the most direct ways AUM affects you as an investor is through the expense ratio - the annual fee deducted from the fund's assets to cover management, administration, distribution, and regulatory costs. SEBI has structured Indian mutual fund fees as a percentage of AUM, and this linkage is fundamental to understanding the economics of investing in mutual funds.

Under SEBI's total expense ratio (TER) regulations, larger AUMs attract lower maximum permitted TER slabs. This is a deliberate policy choice to ensure that investors in larger, more successful funds benefit from economies of scale. The rationale is intuitive: if a fund manager's team, office infrastructure, and technology costs are roughly fixed, then spreading those costs over a larger asset base should result in a lower per-rupee cost for investors.

For instance (using illustrative numbers, not current regulatory figures - always refer to the latest SEBI circulars for exact slabs), a scheme with ₹500 crore AUM might be permitted a higher TER ceiling than a scheme with ₹50,000 crore AUM. As the AUM crosses pre-defined thresholds, the maximum TER comes down in a stepped fashion. This means that as you invest in a very large fund and more investors join, the potential exists for fees to decline - benefiting all unit holders proportionally.

However, the relationship is not always as clean in practice. Fund houses are permitted to charge up to the regulatory maximum; they are not required to pass on the full benefit of scale to investors every time a threshold is crossed. The actual TER charged by a scheme is disclosed in the Scheme Information Document (SID) and Key Information Memorandum (KIM) and is updated on AMFI's website. Investors should always check the current TER of any scheme they are evaluating.

For direct plans - where you invest directly with the AMC without going through a distributor - the TER is always lower than for regular plans, because there is no distribution commission embedded. The difference can be significant over long investment horizons, and it has nothing to do with AUM size per se, but it is an important cost consideration alongside AUM.

From the fund house's perspective, AUM is a direct driver of revenue. An AMC earning 0.5% per annum on ₹1 lakh crore AUM generates ₹5,000 crore in annual fee income. This makes AUM growth a core business objective for every AMC in India, which is why fund houses compete aggressively for investor assets through marketing, new scheme launches, and distributor incentives. Understanding this commercial reality helps investors appreciate that marketing claims about AUM growth are partly a business communication exercise, not necessarily an endorsement of a fund's investment quality.

The takeaway for investors: a very large AUM fund is likely to have a lower expense ratio, but a lower expense ratio alone does not make a fund superior. Strategy fit, fund manager quality, risk-adjusted returns, and portfolio composition all matter alongside cost.

Why Fund Size Matters for Investment Strategy

AUM does not merely measure the past success of a fund - it actively shapes what a fund can and cannot do going forward. This is one of the most practically significant aspects of AUM that investors often overlook.

Consider an equity fund with an AUM of ₹50,000 crore that follows a mid-cap or small-cap strategy. Mid-cap and small-cap stocks listed on the NSE and BSE tend to have lower trading volumes and smaller free-float market capitalisations. If the fund manager wants to build a meaningful position in a mid-cap stock - say, allocating 2% of the portfolio - 2% of ₹50,000 crore is ₹1,000 crore. Buying or selling ₹1,000 crore worth of a stock with limited liquidity in the market is extremely difficult without moving the price significantly. The act of buying pushes the price up (increasing the fund's average acquisition cost), and the act of selling pushes the price down (reducing exit proceeds). This market impact cost is a hidden drag on returns that does not appear in the expense ratio but is very real.

This is why SEBI has introduced guidelines that define the investment universe for different fund categories. A small-cap fund, by SEBI's categorisation rules, must invest a minimum percentage of its assets in small-cap stocks (ranked 251st and beyond by market capitalisation). As a small-cap fund's AUM grows very large, the fund manager increasingly struggles to deploy the money efficiently within that universe. Some fund houses have responded by temporarily closing schemes to new lump-sum investments (keeping SIPs open), capping inflows, or launching similar but separate schemes.

For large-cap funds, the situation is different. Large-cap stocks - the top 100 companies by market capitalisation on Indian exchanges - are highly liquid. A fund with even ₹1 lakh crore AUM can build and exit positions in Nifty 50 or Sensex stocks without materially moving prices. This is one reason why index funds and large-cap active funds can sustain very large AUMs without the same strategy constraints that affect mid and small-cap funds.

For debt funds, AUM matters in a different way. A very large debt fund may hold significant quantities of specific bond issuances. If there is a credit event - a rating downgrade or a default - and many investors rush to redeem simultaneously, the fund manager may be forced to sell illiquid bonds at depressed prices, amplifying losses for remaining investors. SEBI has introduced various measures including side-pocketing provisions and limits on sectoral concentrations partly to manage these risks in large debt funds.

For sectoral or thematic funds, a very large AUM can also be a strategic constraint. If a sectoral fund (say, one focused on healthcare or infrastructure) grows very large, it may end up owning a disproportionate share of every meaningful stock in that sector, limiting further opportunity without concentration risk.

The practical guidance for investors: do not assume bigger is always better. A fund that was nimble and generated excellent returns with a smaller AUM may find it harder to replicate that performance after a rapid AUM surge, particularly in less liquid segments of the market. Track whether a fund manager's performance has remained consistent before and after significant AUM growth.

AUM as a Signal of Investor Confidence

While AUM should never be used as the sole criterion for choosing a fund, it does carry information about investor sentiment and market confidence. Understanding how to read this signal - and its limitations - is a valuable skill for any retail investor.

A fund's AUM grows for two reasons: market appreciation (the underlying assets rise in value) and net inflows (more money coming in than going out). Conversely, AUM falls due to market depreciation or net outflows. Disaggregating these two sources of change is important. A fund whose AUM rises purely because markets have gone up is behaving exactly as expected. But a fund whose AUM rises even during a market correction - because fresh investors and SIP installments are coming in faster than any market decline reduces the value - is demonstrating genuine investor confidence.

In India, AMFI's monthly data releases allow analysts to compute this breakdown. When an equity fund category consistently shows net positive inflows month after month, it signals that investors are not just staying put but actively adding money - a constructive sign for the industry. During periods of market volatility, observing which fund categories see inflows and which see outflows offers a window into investor behaviour and sentiment.

However, there is an important caveat: popular is not always smart. In the history of financial markets, investors have a well-documented tendency to chase recent performance. A fund that has delivered spectacular returns over one or two years often sees a flood of new investments right at the point when the strategy or market cycle that drove those returns is maturing or reversing. This means very high AUM can sometimes be a lagging indicator of past performance rather than a leading indicator of future returns.

For institutional investors - insurance companies, provident funds, corporates - large AUM can be a practical requirement. Large institutional investors need to deploy very large sums and prefer funds with high AUM because they can invest and redeem large amounts without significantly impacting the fund's operations or disturbing other unit holders. In this sense, high AUM builds a reinforcing loop: large AUM attracts institutional money, which further grows AUM.

For the retail investor, the lesson is to use AUM as one data point among many. A fund with growing AUM in a category you understand and believe in is a positive indicator. But pair that with a careful look at the fund's performance across different market cycles, its expense ratio, the portfolio's composition, and whether the fund house has a strong compliance and risk management culture - all of which are verifiable through SEBI filings and AMFI disclosures.

AUM Across Different Mutual Fund Categories in India

The Indian mutual fund landscape, as shaped by SEBI's categorisation and rationalisation circular, divides schemes into equity, debt, hybrid, solution-oriented, and other categories. AUM considerations are not uniform across all of them - each category has its own dynamics.

Equity funds constitute the most visible and widely discussed category. Within equity, SEBI has defined precise categories: large-cap, mid-cap, small-cap, flexi-cap, multi-cap, ELSS, sectoral/thematic, and others. For large-cap and index funds, very large AUMs are generally manageable. For mid-cap and small-cap funds, as discussed, excessive AUM can constrain the strategy. Investors tracking equity AUM should also note that equity fund AUM is significantly influenced by market levels - a 20% market rally can substantially increase equity AUM even with no new inflows, and vice versa during a bear market.

Debt funds have a different AUM profile. Categories like liquid funds, overnight funds, and ultra-short-duration funds tend to attract large institutional and corporate inflows, particularly around financial quarter-ends and year-ends when companies park surplus cash. These funds can see dramatic AUM swings within a single quarter. Long-duration and credit-risk funds, by contrast, tend to have more retail participation and steadier AUM. The 2020 credit crisis in certain debt fund categories, which led to winding up of some schemes, was a stark reminder that AUM in debt funds can evaporate quickly during a credit event or regulatory shock.

Hybrid funds - balanced advantage funds, aggressive hybrid funds, and the like - have grown their AUM significantly in recent years as investors sought a middle path between pure equity and pure debt. These funds are often marketed to first-time equity investors, and their AUM growth has paralleled the broader retail SIP boom in India.

Index funds and ETFs (Exchange Traded Funds) have seen explosive AUM growth in India, driven partly by EPFO (Employees' Provident Fund Organisation) mandated investments into Nifty 50 and Sensex ETFs, and partly by a growing understanding among retail investors that passive investing can be a cost-effective long-term strategy. The AUM of passive funds now forms a meaningful share of total equity AUM in India, and this proportion has been increasing year on year.

Fund of Funds (FoFs) present an interesting AUM dynamic: when you invest in an FoF, your money goes into a fund that then invests in other mutual fund schemes. The AUM of the FoF is counted once, and the AUM of the underlying funds is counted separately (preventing double-counting at the industry level in certain disclosures). For investors in FoFs, the relevant AUM to check is both the FoF's own size and the underlying funds' sizes.

Solution-oriented funds like retirement funds and children's benefit funds have typically smaller AUMs given their lock-in periods and targeted investor base. Their AUM growth tends to be steadier and less susceptible to market-driven redemption spikes.

AUM and Liquidity: What Happens When You Want to Redeem

One of the practical implications of AUM that retail investors rarely think about until they need it is liquidity - specifically, how easily and quickly can you get your money back when you submit a redemption request.

For most equity and hybrid mutual fund schemes in India, redemption is straightforward. You submit a redemption request before the cut-off time (generally 3:00 PM IST for most equity schemes), and you receive the applicable day's NAV. The proceeds are credited to your bank account within 2 to 3 business days (T+2 or T+3 depending on the scheme type and whether it is a direct or regular plan). The fund's AUM size generally does not affect this process for individual retail investors - whether the fund has ₹5,000 crore or ₹50,000 crore AUM, your redemption is processed at the same speed.

However, AUM becomes critically important for liquidity in two specific scenarios.

First, for very large institutional redemptions - when a corporate or insurance company wants to redeem a very large amount from a fund - a large AUM provides a buffer. If an institution wants to redeem ₹500 crore from a fund with ₹50,000 crore AUM, the fund manager can meet this redemption by using the cash portion of the portfolio or by selling a small fraction of holdings without distorting the portfolio. But if a ₹500 crore redemption hits a fund with only ₹1,000 crore AUM, the fund manager must sell 50% of the portfolio, potentially at adverse prices, which can hurt remaining investors.

Second, in times of market stress or panic, a fund with a large and diversified investor base - which often correlates with larger AUM - may be more resilient. If the AUM is spread across millions of small SIP investors rather than concentrated in a few large institutional investors, the probability of a sudden massive redemption spike is lower, because retail investors tend to redeem in smaller, more manageable amounts even during downturns.

For liquid funds and overnight funds - typically used by investors for short-term cash parking - AUM is directly related to liquidity. These funds hold highly liquid instruments like treasury bills, commercial papers, and certificates of deposit with very short maturities. Their large AUM generally reflects institutional participation and does not impede individual retail redemption. However, SEBI has put in place swing pricing mechanisms and liquidity risk management frameworks for open-ended debt funds to protect remaining investors during large redemption events.

The key message: for retail investors with moderate investment sizes, AUM rarely directly affects your redemption experience. But understanding the liquidity structure of a fund - how liquid its underlying portfolio is relative to its AUM and investor concentration - is important for debt and hybrid fund investors in particular.

AUM in Portfolio Management Services and Other Managed Products

The concept of AUM extends well beyond mutual funds in India, though mutual funds are the context most retail investors encounter it in. It is worth briefly understanding how AUM applies across other investment products so that when you see the term in different settings, you can interpret it correctly.

Portfolio Management Services (PMS) are regulated by SEBI and offer customised investment portfolios to high-net-worth individuals (HNIs). The minimum investment threshold for PMS in India is set by SEBI at ₹50 lakh. A PMS provider's total AUM is the combined value of all client portfolios managed by it. Unlike mutual funds, PMS accounts are not pooled - each client owns securities directly in their own demat account. The PMS manager's reported AUM is thus a measure of their total client assets but does not involve the pooling structure of a mutual fund.

Alternative Investment Funds (AIFs) are another SEBI-regulated category. AIFs include venture capital funds, private equity funds, hedge funds, and other alternative strategies. AIF managers report their AUM as the total commitments or the total invested assets, depending on the category. AIF investment thresholds are substantially higher than mutual funds, keeping this category largely inaccessible to typical retail investors.

Robo-advisory platforms in India - algorithm-driven online services that create and manage investment portfolios - also use AUM as a metric of their scale and trustworthiness. These platforms typically invest client money in mutual funds and ETFs, so the underlying AUM ultimately flows into SEBI-regulated products.

Insurance companies in India manage enormous assets on behalf of policyholders - particularly through Unit Linked Insurance Plans (ULIPs). The Insurance Regulatory and Development Authority of India (IRDAI) regulates insurance companies, and the AUM of ULIPs is reported separately from the mutual fund industry. However, for investors comparing a ULIP with a mutual fund, understanding that both involve professional management of a pool of assets (and both charge fees as a percentage of AUM) is useful for making apple-to-apple cost comparisons.

For investors building diversified financial plans, knowing the AUM dynamics of each product type they use helps in assessing the commercial incentives of the providers, the scalability of the strategy being employed, and the fee structures they are subject to. Whether you are invested in a large mutual fund, a PMS, or an AIF, AUM is always the underlying driver of the manager's revenue and the investor's cost.

Common Misconceptions About AUM

Over years of investor education, certain myths about AUM have proven particularly persistent. Addressing them directly helps investors develop a more nuanced and accurate mental model.

Myth 1: A larger AUM means better returns. This is perhaps the most widespread misconception. AUM reflects the scale of a fund, not its investment quality. A very large fund and a small fund following the same strategy and investing in the same kinds of securities will deliver similar returns (before costs) if markets are efficient. In some cases, as discussed, a very large fund in a mid or small-cap category may actually deliver lower returns than a smaller, nimbler fund in the same category, because the large fund faces market impact costs and portfolio construction constraints. Past returns are a function of investment decisions, market conditions, and costs - not of AUM size directly.

Myth 2: A new fund with zero AUM is risky or untrustworthy. New Fund Offers (NFOs) launch with zero AUM and build up their asset base. The AUM at launch says nothing about the investment team's capability, the soundness of the strategy, or the AMC's regulatory standing. An established AMC launching a new scheme has the same infrastructure, compliance systems, and fund management expertise as its existing schemes. Evaluate the strategy, the fund house's track record in similar mandates, and the costs - not the starting AUM.

Myth 3: Falling AUM always means investors are losing money. AUM can fall for two reasons: market depreciation or net outflows (more redemptions than purchases). These are very different situations. In a falling market, even a well-managed fund with satisfied investors will see AUM decline simply because the securities are worth less. That is not a red flag - it is a mathematical consequence of market behaviour. Net outflows from a fund, on the other hand, are worth examining: are investors leaving because of poor relative performance, a change in fund mandate, or simply because they need liquidity? The context matters.

Myth 4: AUM and NAV are the same thing. This comes up frequently among new investors. NAV is the per-unit price; AUM is the total size of the fund. A fund can have a very high NAV (say ₹500 per unit) but a small AUM if it has very few units outstanding. Conversely, a fund can have a low NAV (say ₹15 per unit) but enormous AUM if millions of units are outstanding. Neither a high NAV nor a high AUM by itself is an indicator of future return potential.

Myth 5: Monthly AUM rankings determine which fund you should choose. Every month, AMFI publishes fund house-wise AUM rankings. These rankings are widely reported in the financial media. They are useful for understanding industry structure and competitive dynamics, but they are not an investment recommendation mechanism. Choose funds based on their fit with your financial goals, time horizon, risk tolerance, and historical risk-adjusted performance - not on where the fund house ranks in AUM league tables.

Myth 6: Industry AUM growth means the market will keep rising. High AUM growth can sometimes reflect a late-stage bull market where retail investors are aggressively buying. It can also reflect genuine long-term structural savings behaviour. The causal relationship between industry AUM and market direction is not straightforward. Use industry AUM data as context, not as a market timing signal.

Using AUM Data Practically: A Framework for Investors

Now that you have a thorough understanding of what AUM means, how it is calculated, and what it does and does not tell you, here is a practical framework for using AUM data as part of your mutual fund evaluation process.

Step 1 - Check whether the AUM is appropriate for the fund's strategy. For large-cap and index funds, size is rarely a concern. For mid-cap funds, be cautious when the AUM is very high - say, above ₹20,000-25,000 crore - as the fund manager may struggle to execute a differentiated strategy in a universe of stocks with limited liquidity. For small-cap funds, the concern kicks in even earlier. Research whether the fund house has taken any steps (such as capping lump-sum inflows) to manage AUM growth. For debt funds, check portfolio liquidity relative to AUM.

Step 2 - Track AUM trends over time, not just the current figure. Visit AMFI's website and look at a fund's monthly AUM over the past 12-24 months. Is it consistently growing with new inflows, or is the growth largely driven by market returns? Is there any sign of persistent outflows? Contextualise this against the category average to see whether the trend is fund-specific or industry-wide.

Step 3 - Compare expense ratios, noting the AUM context. Larger funds should, in principle, charge lower TERs due to regulatory mandates. If a large fund is still charging a TER close to the regulatory maximum, that is worth investigating - perhaps through the scheme's SID or by comparing TERs across similar funds using publicly available AMFI or AMC disclosures.

Step 4 - Do not conflate AUM with performance. Always look at risk-adjusted returns over multiple market cycles. Compare a fund's performance against its benchmark index and its category peers. AUM is a context variable, not a performance indicator.

Step 5 - For institutional or very large investments, check fund concentration. If you or your organisation is investing a large sum, check what percentage of the fund's AUM your investment would represent. Investing a sum that is a significant fraction of a fund's AUM can make it harder to redeem without impacting the fund's portfolio.

Step 6 - Use AUM as a proxy for fund house stability, with caution. A fund house managing a very small total AUM may have limited resources for research, compliance, and technology. However, this is not a hard rule - some boutique AMCs with smaller AUMs have delivered exceptional performance through focused mandates and strong investment teams. SEBI's regulatory oversight applies equally to all registered AMCs regardless of size.

By incorporating AUM analysis into a broader due diligence framework - alongside expense ratio, portfolio composition, risk metrics, fund manager tenure, and fund house pedigree - you will be far better equipped to make informed, confident mutual fund investment decisions.

Example

Key benefits

How it works

1. 1
   Investors Pool Capital

   When investors buy units of a mutual fund scheme, their money is pooled together. This pool of capital forms the foundation of the scheme's AUM.

2. 2
   Fund Manager Deploys Capital

   The AMC's fund manager invests the pooled money into a portfolio of securities - equities on the NSE or BSE, debt instruments, money market securities, or other assets as permitted by the scheme's mandate and SEBI regulations.

3. 3
   Daily Marking to Market

   Every business day, all securities in the portfolio are revalued at their current market prices. Rising prices increase AUM; falling prices decrease it - independent of any investor activity.

4. 4
   Liabilities are Subtracted

   Accrued expenses, management fees, and other payables are deducted from total asset value to arrive at net assets - this net figure is the scheme's AUM on that day.

5. 5
   NAV is Derived from AUM

   The AUM is divided by the total number of outstanding units to calculate the NAV per unit. This is the price at which new investments are accepted and redemptions are processed each business day.

6. 6
   Inflows and Outflows Adjust AUM

   Fresh purchases add to AUM (and increase outstanding units), while redemptions reduce AUM (and decrease outstanding units). Dividends paid out under dividend option schemes also reduce AUM.

7. 7
   Disclosure and Regulatory Reporting

   AMFI publishes daily and monthly AUM data for every SEBI-registered scheme and AMC, ensuring full transparency. This data is freely accessible to all investors on the AMFI website and individual AMC portals.

Formula

AUM = Total Market Value of All Portfolio Assets − Total Liabilities
NAV per Unit = AUM ÷ Total Number of Outstanding Units

Key takeaways

Frequently asked questions

Related terms