Investing
AUM
Also known as: Assets Under Management
The total amount of money a mutual fund or fund house is currently managing.
AUM is the combined value of everyone's money in a fund. A ₹20,000 crore AUM fund is managing that much across all its investors.
A very large AUM can signal trust, but in small-cap funds a huge AUM can actually make it harder for the manager to move nimbly.
It is one data point, not a verdict. A big fund is not automatically a good fund.
For example
A small-cap fund swelling from ₹2,000cr to ₹40,000cr AUM may struggle to buy enough of the small companies it targets without moving prices.