The basics
What is AUM?
AUM is the total market value of the money a mutual fund scheme, or a whole fund house, manages for its investors.
How it works
A scheme's AUM rises when investors put money in and when its holdings gain in value, and falls with redemptions and market falls. Fund houses disclose AUM every month.
Size cuts both ways. A large fund spreads its fixed costs over more money, but a very large small cap fund can find it harder to buy and sell small companies without moving their prices.
Example
A scheme with ₹8,000 crore of holdings at the day's prices has an AUM of ₹8,000 crore, whether that came from new money or from rising prices.
Keep in mind
- AUM is not a measure of returns or quality.
- Expense ratio limits set by SEBI are lower for larger schemes.
Questions people ask
Does a bigger fund give better returns?
Not necessarily. Size affects costs and, for small and mid cap funds, how easily the fund can trade, but returns depend on the holdings.
Where can I see a fund's AUM?
In its monthly factsheet and on the fund house's website.
Related terms
General information for education, not investment advice or a recommendation of any scheme. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future. Last reviewed 25 October 2026.