Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Phase One Initiated: Expansion. For questions, email me
Ultimate Crypto Resource Guide
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cRYPTO Glossary

Explore essential terms and concepts in the world of cryptocurrency, blockchain, and trading

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Assets Under Management (AUM)

Assets under management refers to the total market value of all funds, investments, or assets that a financial institution or individual manages on behalf of their clients.

Explanation of Specific Terms:

  • Total market value: The combined value of all assets, including stocks, bonds, cash equivalents, real estate, and other investments, managed by the entity.
  • Financial institution or individual: Entities such as investment firms, wealth managers, hedge funds, or individual portfolio managers who oversee and manage investments on behalf of clients.
  • Managed on behalf of clients: AUM represents funds entrusted to the manager by clients seeking professional investment management services.

Key Points for Beginners:

  • Measurement: AUM is a critical metric used to gauge the size and scale of a financial institution's investment management operations.
  • Importance: Higher AUM generally reflects trust and confidence from clients, as well as the institution's ability to attract and retain assets.
  • Performance basis: Fees charged by asset managers are often based on a percentage of AUM, tying their compensation to the growth and management of client assets.

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