An Assets Under Management (AUM) fee is a type of fee that investment advisors or financial firms charge for managing your money. It’s calculated as a percentage of the total amount of assets they manage on your behalf, and it’s typically charged annually. For example, if you have an investment account with a firm, they may charge this fee based on the value of your portfolio. The idea is that as your investments grow, the advisor earns more, aligning their interests with yours. AUM fees usually cover services like investment selection, portfolio monitoring, and financial advice, but it’s important to understand what’s included, as some services may cost extra.