AUM is an indicator of the size and success of a given fund house. You can easily compare a fund's assets under management in various timelines and performance with other similar schemes. The AUM-value also includes the returns that a mutual fund earns.

What is AUM and why is it important?

Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. ... However, investors often consider higher investment inflows and higher AUM comparisons as a positive indicator of quality and management experience.

What is the importance of AUM?

Why is AUM Important? Since the assets under management define the size and success of a company, it is important that investors consider them before making any investment choices. The value of AUM of a company also includes the returns that a mutual fund earns, hence can be easily compared with its peers.