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Investment

AUM

Also known as: Assets Under Management, Fund Size

Assets Under Management - Total market value of assets managed by a mutual fund or investment company.

Detailed Explanation

AUM (Assets Under Management) represents the total value of all investor money that a fund house or scheme manages. For mutual funds, larger AUM provides economies of scale and better research capabilities, but can create liquidity challenges in smallcap funds. AUM growth indicates investor confidence but can force fund managers to invest in less attractive opportunities. Optimal AUM varies by fund category and strategy.