Assets Under Management (AUM)
Assets under management (AUM) is the total market value of all financial assets held by a financial institution.
Assets under management (AUM) is the total market value of all financial assets held by a financial institution. Growth in AUM over time, and high growth compared to industry competitors, generally indicates a strong investment strategy and high value asset management. Alternatively, AUM declines when value is lost or investors withdrawal capital from the managing institution.
Cash is also considered AUM. When an investor sells an asset for cash, and that cash remains in the custody or management of another party, AUM may not decline. Institutions vary in their calculation of AUM because they provide different money management services.
For example, a depository institution will calculate AUM as the market value of deposit accounts, whereas a mutual fund would only consider AUM to include the market value of funds that it has permission to invest on behalf of another. Bitcoin custodial storage.
Assets Under Management (AUM) is a concept relevant to Bitcoin, finance, or blockchain technology that investors should understand. Onramp's comprehensive Bitcoin glossary provides clear explanations of Assets Under Management (AUM) and hundreds of other terms to support informed investment decisions.
Frequently Asked Questions
What is Assets Under Management (AUM)?
Assets Under Management (AUM) is a term used in Bitcoin, finance, or blockchain technology. Understanding Assets Under Management (AUM) helps investors and enthusiasts build a stronger foundation of knowledge about digital assets and financial markets.
Why is Assets Under Management (AUM) important?
Assets Under Management (AUM) is relevant to understanding how Bitcoin, financial markets, or blockchain technology operates. Knowledge of such concepts helps investors make better-informed decisions about their portfolios.
Where can investors learn more about Assets Under Management (AUM)?
Onramp's Bitcoin glossary offers detailed, accessible explanations of Assets Under Management (AUM) and over 500 other terms related to Bitcoin, finance, and blockchain technology for investors at all experience levels.
