AUM Assets Under Management Basic Concepts And Evaluation Metrics

The definition and calculation of AUM

AUM includes the market value of all assets under management, which is usually calculated by multiplying the net asset value by the number of fund shares for funds; in the cryptocurrency space, it encompasses assets such as stablecoins, tokens, and NFTs, with data updated in real-time according to market fluctuations.

The Importance of AUM

High AUM reflects a large inflow of funds and a high level of market trust, which helps the fund attract more investors and supports more robust risk management and liquidity provision.

Different funds’ AUM characteristics

Mutual funds, hedge funds, and cryptocurrency asset funds differ in terms of scale and volatility performance regarding Assets Under Management, while corporate asset management encompasses a broader range of private wealth management.

Factors Affecting AUM Changes

Market price fluctuations, capital flows, performance changes, and policy adjustments will directly affect AUM data, and investors need to make comprehensive judgments on these dynamics.

How to use AUM for evaluation

Investors understand the fund size, market recognition, and risk tolerance through AUM, evaluate cost-effectiveness and liquidity, and make reasonable allocation decisions.

Summary

AUM is one of the key indicators that connects traditional and emerging asset management, and it has significant value in understanding the structure of financial and crypto markets.