Fund Accounting Adda

Let us understand it in detail by referring to the sample report we have shown in the post ( see at bottom of the page) - AUM -  Asset Under Managemen t The total market value of the securities that a financial institution holds or manages on behalf of its customers is referred to as the institution's assets under management (AUM). Therefore  the current AUM in the report is Rs. 2,20,64,997  (Total of Value column= Equity + Mutual Fund + Bond + Cash & Equivalent) and the break-up as follows- And here we can also see the holding shares in % of each investment type - about 76% of the shares are only equity.

  In the world of investments a fund manager can use a number of instruments to invest the client's funds, here are a few-  Preferences by popularity and exposure - 1. Equity (Shares)                                                  2. Mutual Fund/ETF 3. Bonds 4. Derivatives (Futures & Options) Will start with Equity investment! When we buy a company's stock, we become a shareholder of that company because we have ownership (or a share) in it. So whenever we trade any stock, the broker will send us the contract note after the market close which contains all the stocks bought by us along with the quantity, cost and price Take a look below - it is a contract note and see the highlighted figures- First you see the name of the stock, followed by the transaction type (buy or sell), volume, gross price, brokerage per share and net price before taxes. And lastly we can see the taxes imposed like STT and GST etc. So here we need to understand two things- Gross Cost and Net Cost, l