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Assets Under Management (AUM)
Assets under management measures the total market values of all the funds controlled by an individual or financial institution on behalf of their clients.
What Is Assets Under Management (AUM)?
Assets under management (AUM), also known as funds under management, is the total market value of investments or assets that are managed by a hedge fund, mutual fund, or wealth management company on behalf of their clients. AUM changes depending on the performance of the funds and the money investors are putting in or taking out.
Due to the complications involved in the process, many agencies are coming forward with a new tool called asset management. Rather than dealing with several accounts and wallets, crypto asset management platforms do the job of helping customers by merging their holdings.
AUM is a significant marker that manages all the aspects of funds and crypto. If the AUM is $1 million, then it is considered small fry, but if it’s more than $1 billion, then it’s considered a big project. Since regulated funds need the proper third-party services, such as fund administrators, auditors, and custodians, they tend to require at least $10 million to cover overhead costs. In most countries, managing a fund requires a license by local security exchange commissions.
Author:
Prior to joining the Brooker Group, Varit was an auditor at Deloitte in Bangkok and received a BA in science in accounting and finance from Lehigh University and a master’s degree in accounting from Boston College.