Welcome. In this lecture we'll discuss about asset under management. A new asset under management is sometimes called funds under management measures the total market value of all the financial assets which AMC manages on behalf of its clients or themselves. It includes capital raised from the investors and capital belonging to the principles of the AMC. Suppose for a mutual fund, AMC puts in 2 million rupees into the fund and AMC raises 10 billion rupees from the investors. Then aim for the mutual fund is two plus 10 is equal to 12 million rupees a year risers when investment performance is positive, or new customers are added or customers buy more units into the mutual fund.

You call when the investment performance is negative, or the customers redeem their units from the mutual fund or customers leave the mutual fund. When a u m rises, the fees for the mutual fund management also increases and the reverse is also true.