Here is a collection of must-see videos that will help you understand the world of mutual funds. Happy Investing!

Financial discipline is similar to going on a diet. It is never easy. There are plenty of temptations - an urge to over spend, letting emotions control your investments and confusion due to the problem of plenty - look at the plethora of options available in the market, with the returns of one scheme trying to beat the other. Who does one turn to for advice? Dependency on one person or your financial advisor alone is also tricky. Which is why people often turn to mutual funds.

The argument here is that experts are taking care of your investments. Depending on your investment appetite and risk appetite, mutual funds come with a good mix of both equity and debt, which helps you earn an interest of 12-15% or more depending on the type of investment schteme you have picked and how the markets have performed overall. Yet, selecting a mutual fund can be confounding due to the raft of choices available.

  • upcoming
    Balanced Funds
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    Liquid Funds
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    Fixed Majority Funds
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    Gilt Funds
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    Income Funds
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    Monthly Income Funds

Episode 7 I Beginner

AUM - Assets Under Management

What is Assets Under Management?

Assets Under Management or AUM is the overall market value of assets or money a mutual fund scheme holds. An AUM changes according to the flow of money in and out of a particular fund or company. The AUM is an indicator of the size and trust investors have in a fund house and include the returns a mutual fund earns. The fund manager manages the money as per the investment mandate. Market fluctuations, investment performance and redemptions or withdrawals do impact the assets under management

Does an AUM matter?

AUM can help you get an indication of the size of a company’s operations relative to its competitors. '

AUM is usually considered in conjunction with management performance and experience. While it is just one aspect to decide if you should invest in a particular fund house or not, higher AUM indicates a positive quality and good management experience.

When investing, only the AUM shouldn’t be your investment deciding factor. Other factors like the expense ratio, reputation of the fund manager, compliance with investment mandate and the fund’s track record should be considered before you invest.