{"id":17588,"date":"2025-07-01T21:17:15","date_gmt":"2025-07-01T21:17:15","guid":{"rendered":"https:\/\/finderica.com\/?p=17588"},"modified":"2025-07-01T21:17:15","modified_gmt":"2025-07-01T21:17:15","slug":"assets-under-management-aum-what-it-is-how-its-used","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=17588","title":{"rendered":"Assets Under Management (AUM): What It Is, How It\u2019s Used"},"content":{"rendered":"
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Assets under management (AUM) is the total market value of assets an advisor or firm manages on behalf of its clients. As an individual investor, your AUM is the amount you have invested. Investors may use AUM to evaluate the quality of a firm; advisors may use it to set their fees. <\/span><\/p>\n<\/div>\n

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How to calculate assets under management (AUM)<\/span><\/h2>\n<\/div>\n

For individuals<\/span><\/h3>\n
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Assets under management (AUM) is the total market value of a person or firm\u2019s invested assets. Those assets may include:<\/span><\/p>\n<\/div>\n

For investment firms<\/span><\/h3>\n
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A firm\u2019s AUM is the aggregate market value of the total assets they manage for their entire pool of investors. That means an advisor\u2019s AUM could be based on many clients with small investments, or a few clients with large investments \u2014 or a mix of the two.<\/span><\/p>\n<\/div>\n

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\ud83e\udd13<\/span>Nerdy Tip<\/span><\/p>\n

AUM is the market value of the investments. That means it can fluctuate based on market conditions.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Generally, investors, investment advisors and regulatory agencies use AUM in three ways. <\/span><\/p>\n<\/div>\n

1. Evaluating an advisor<\/span><\/h3>\n
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Investors looking for an experienced and stable financial advisor may consider assets under management in the evaluation process. A high AUM may (or may not) be one indicator of a solid advisor. <\/span><\/p>\n<\/div>\n

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AUM isn\u2019t the only or best metric for <\/span>choosing a financial advisor<\/span>; there are other things to consider to evaluate the quality of an advisor:<\/span><\/p>\n<\/div>\n

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