Definition of AUM (Assets Under Management)
AUM (Assets Under Management) is the total market value of all investments that an AMC, fund house, or portfolio manager manages on behalf of investors at a given point in time.
AUM is a key indicator of an AMC's size, reputation, and the trust investors place in it. As of early 2026, the Indian mutual fund industry's total AUM has crossed ₹55 lakh crore. Larger AUM can mean a fund is harder to manage (especially for small-cap funds) but also indicates broad investor confidence.
For individual fund schemes, a very small AUM (below ₹100 crore) may indicate low investor interest or a new fund that hasn't yet established a track record. Extremely large AUM in a small-cap or mid-cap fund can limit agility — the fund manager may struggle to enter or exit positions quickly. Checking AUM is part of due diligence when selecting a mutual fund.