Consider the following statements regarding Assets under management(AUM): It is the total market value of investments a financial institution owns or manages on behalf of its clients. AUM of an institution remains constant throughout a financial year.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?

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Consider the following statements regarding Assets under management (AUM):

It is the total market value of investments a financial institution owns or manages on behalf of its clients.
AUM of an institution remains constant throughout a financial year.

Which of the statements given above is/are correct?

a)
1 only
b)
2 only
c)
Both 1 and 2
d)
Neither 1 nor 2

Correct answer is option 'A'. Can you explain this answer?

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Consider the following statements regarding Assets under management(AU...

Life Insurance Corporation of India (LIC) recently said its exposure to the Adani Group was less than 1% of the total assets under management (AUM) at book value.

About Assets under management (AUM):

What is it? AUM is the total market value of investments a financial institution (such as a bank, mutual fund, or hedge fund) owns or manages on behalf of its clients.
AUM can be calculated in different ways, depending on the firm’s discretion.
The calculation is done on the basis of either the total capital that the firm handles or calculating the Individual client’s money.
AUM fluctuates daily reflecting the variable returns from stocks, mutual funds and change in prices of fixed investment.
Importance of AUM:
AUM helps to build the market value of the firm.
It can be used as a market tool to attract potential new customers. The higher a firm's AUM is, the more likely people are to trust them and invest with them.
A fund's management fees and expenses are often calculated as a percentage of AUM.

Hence only statement 1 is correct.

Answered by Notes Wala · View profile

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Consider the following statements regarding Assets under management(AUM): It is the total market value of investments a financial institution owns or manages on behalf of its clients. AUM of an institution remains constant throughout a financial year.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?

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