Total assets under management (AUM) of investment advisors registered at the U.S. SEC surpassed $128 trillion in 2021. How is there so much money sitting in investments? If the global GDP is only $96~ trillion, how is this possible? I know GDP and AUM are unrelated; the AUM just seems like an incomprehensible amount of money. Thanks in advance!
This article explains in a bit more detail: [https://www.fa-mag.com/news/ria-firms-top-record–110t-aum–60-million-clients–iaa-reports-62858.html](https://www.fa-mag.com/news/ria-firms-top-record–110t-aum–60-million-clients–iaa-reports-62858.html)
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GDP is annual output, money under management is accumulated. So it’s like the person earning $100k a year that has $300k in assets in their retirement and investment accounts.
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