MANAGEMENT

Detailed explanation-1: -AUM is the sum of the market value for all of the investments managed by a fund or family of funds, a venture capital firm, brokerage company, or an individual registered as an investment advisor or portfolio manager.

Detailed explanation-2: -The calculation is done on the basis of either the total capital that the firm handles or calculating the Individual client’s money. Also, sometimes overall cash, mutual funds, and fixed deposits are not considered. Instead, only the capital that can be traded by the executive on behalf of the client is calculated.

Detailed explanation-3: -The value of any financial asset is the present value of the expected cash flows, according to the fundamental principle of valuation. To determine the current value, we need to know the value of future cash flows as well as the discount rate that will be applied to those cash flows.

Detailed explanation-4: -Assets under management (AUM), also called funds under management, is the total market value of the securities a financial institution (such as a bank, mutual fund, or hedge fund) owns or manages on behalf of its clients.

Detailed explanation-5: -financial asset a contractual claim to something of value; modern economies have four main types of financial assets: bank deposits, stocks, bonds, and loans.