InvestorQ : How important is AUM when it comes to select a Mutual Fund Scheme?
Isha Tharwani made post

How important is AUM when it comes to select a Mutual Fund Scheme?

Answer
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Anjali Desai answered.
1 year ago


Performance of a mutual fund scheme has no correlation to its AUM size. Infact sometimes it can be said that the with the growth in the fund's corpus the performance of the funds deteriorate. Although this statement can a start a heated contention from fund house and fun manager, so let ‘s not dive there.

Coming to your question, size of AUM of mutual fund houses actually does not give anything about its future performance. The performance of any fund purely depends upon the diversification and the investment style, which is depend upon the the fund manager's. Investment processes followed in the fund house also play a important role.

It is best to assess whether AUM growth is causing changes to the investment style. Some changes may be in the interest of the investors and some may not. Act before any changes materialise as a disappointing performance.

You can easily surf online for Fund house and know their AUM. Some of the top fund houses along with their AUM are below:

Source: https://www.indiainfoline.com/mutualfunds/fundhouses


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1 year ago


AUM or Asset Under Management is a figure indicating how much money has been invested in a particular fund by all investors put together. Higher AUM does not mean that the Fund is going to perform well or is doing great.


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Gufrankhan answered.
1 year ago


iska kiya matlab he bolo