Average Assets Under Management (AUM) for Financial Advisors

Average assets under management (AUM) provide a helpful benchmark for evaluating how a financial advisory firm compares with the broader industry. Some firms manage hundreds of millions of dollars, while others remain smaller and more specialized based on their client focus, service offerings and growth approach. Reviewing recent SEC data can offer insight into what a “typical” advisor manages today and how firms of varying sizes fit into the overall advisory landscape.

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What Is the Average AUM for a Financial Advisor?

A typical advisor serving individuals as clients has $424 million in AUM, according to an analysis of SEC data conducted by the Investment Adviser Association (IAA).¹ These advisors operate smaller firms, with two offices and eight employees on average. For added perspective, 92.8% of registered investment advisor firms have fewer than 100 employees total.

The IAA’s analysis reviewed data from 16,544 advisors registered with the Securities and Exchange Commission. Here are some key data points from the study related to advisor AUM:

Total AUM (2026)	$176.8 trillion
% of Advisors Providing Asset Management for Individuals	66.2%
% of Advisors With Less Than $100 Million AUM	9.9%
% of Advisors With AUM Between $100 Million and $1 Billion	5.75%
% of Advisors With AUM Between $1 Billion and $5 Billion	19.9%
% of Advisors With AUM Between $5 Billion and $100 Billion	11.1%
% of Advisors With AUM Over $100 Billion	1.6%

Here are some additional takeaways from the study related to advisor AUM:

Total AUM increased by 22.3% in 2025, reaching a new record high.
Advisors with less than $1 billion in AUM represented nearly all new SEC registrations. Within that asset range, newly registered advisors made up more than one-quarter of firms.
Among SEC-registered advisors, the median assets under management were $446.9 million.
Over the past 25 years, assets have increased by 9.1% per year on average.
Approximately 80% of advisers experienced an increase in assets under management in 2025.

The IAA report cites the positive market environment that characterized much of 2025 as a key driver of AUM growth among advisors. The S&P 500 delivered a return of 16.39% in 2025; while that’s lower than 2023 and 2024 returns, it marks the third consecutive year of double-digit growth.²

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What Is a Good Financial Advisor AUM?

A “good” AUM is subjective and hinges on several factors, including the number of clients you have, your niche, the services you offer and your location. The $424 average AUM figure cited by the IAA can be a useful benchmark for measuring your firm’s success. However, it’s important to consider the specific individual factors that influence the amount of assets you manage.

Understanding your firm’s AUM number and what drives it has several useful applications:

Goal-Setting	Tracking AUM can be helpful when setting goals for client acquisition and retention. You can use this number as a guide for establishing achievable milestones to increase assets under management.
Valuation	Having an accurate value of your firm is critical for succession planning if your plans include selling the business, either to an internal or external buyer. AUM is a key component of the revenue multiplier valuation model.
Financing	AUM can influence a lender or investor’s decision to approve your financing request, should you decide to seek a loan or pursue venture capital/angel investing.

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How to Increase AUM As an Advisor

An advisor researches how to increase average AUM.

If you have a specific AUM target in mind but have not reached it yet, it may help to evaluate where new growth could come from. The following strategies can support prospecting, client retention and long-term AUM growth.

Engage Your Current Clients

Sometimes increasing AUM is as simple as talking to your clients. For instance, they may have assets held away of which you were not aware. You might offer to review that segment of their portfolio, which is an opportunity to bring them under your management.

Invest in Lead Generation and Marketing

Investing in lead generation and marketing can help financial advisors support their client acquisition efforts. SmartAsset AMP (Advisor Marketing Platform) connects advisors with high-intent investors actively seeking guidance. Beyond lead delivery, AMP offers automated marketing tools to help you nurture prospects and streamline your follow-up efforts, which can help organize outreach and reduce manual follow-up.

But AMP doesn’t stop at lead delivery. It equips you with a full suite of automated marketing tools designed to help you nurture each prospect with less manual effort. From pre-built email sequences to automated text and phone outreach, SmartAsset AMP enables you to maintain consistent follow-up and personalized engagement without spending hours on manual communication. Now advisors also have the ability to create and manage automated email newsletter campaigns on thousands of relevant topics.

The platform also includes seamless CRM integration and campaign tracking tools, all designed to streamline your workflow and support follow-up and campaign management. Instead of juggling spreadsheets and one-off messages, you can manage your lead pipeline activity in one place, freeing up more time to focus on building client relationships and providing expert advice. Schedule a demo here.

Seek out High-Net-Worth Clients

Adding more HNW or ultra-high-net-worth clients to your roster could lead to a substantial increase in AUM overnight. The key is knowing how to attract affluent clients to your business and deliver the level of service and type of advice they expect.

This may require some refinement of your marketing strategy to ensure you’re sending the right message. Wealthier clients tend to have different planning needs, so your marketing should convey how you’re uniquely equipped to address their most significant pain points.

Encourage Referrals

Referrals can be an excellent tool for growth if you have a steady influx of new prospects entering your sales pipeline. Some of the best referral sources for advisors include your existing clients and other professionals in your network. Delivering superior service, hosting client events to show your appreciation and cultivating centers of influence are all ways to increase your referral rates.

You can also establish a referral program that offers current clients an incentive for each referral they make. Review compliance guidelines to understand the rules that apply when paying for referrals.

Expand Your Offerings

Creating a new offering can help you attract more clients or encourage your existing clients to bring more assets under your management. Before you move ahead with this strategy, consider what services you’re not offering now that your clients would find valuable. Then weigh the cost to implement those new services against the expected ROI to determine if it makes financial sense to do so.

Build Up Your Team

Developing the right team could help you attract more clients and increase AUM if you’re adding advisors with specialized expertise or skills to your roster. Consider what gaps you want to fill with your firm’s services and which type of candidate may be best suited to meet those needs. That can help you develop a strong advisor job description so you can attract the right candidates.

Frequently Asked Questions (FAQs)

Can You Start an Advisory Firm With No Assets Under Management?

It’s possible to launch a brand new advisory firm with zero AUM, though it’s typically not the easiest path to take. You may have to work a little harder to find and attract your first clients, which is where a solid financial advisor marketing plan comes into play. Setting some realistic goals for growing AUM in your first year and beyond can help you develop a winning client acquisition strategy.

What Is a Reasonable AUM Fee?

A typical financial advisor fee is 1% of AUM. That’s more or less the industry standard, though some advisors may charge more while others charge less. When setting your fees, it’s important to consider what’s competitive based on where you are in the market landscape, and what your ideal clients are likely to expect.

Why Do Advisors Lose Clients and AUM?

Clients leave their advisors for a variety of reasons, including poor communication, underwhelming performance and high fees. Losing a client can shrink your AUM, and it’s important to be proactive in retaining your client base. Delivering top-tier service is a must, and the most successful advisors understand the importance of encouraging engagement and showing client appreciation.

Bottom Line

An advisor compares his AUM with the average for other financial advisors.

Reviewing average financial advisor AUM can help provide context as you set goals for your firm’s growth. It’s important to remember, however, that AUM is only one measure of success. Ultimately, each advisory firm defines success differently based on its priorities, client relationships and long-term objectives.

Tips for Growing Your Advisory Business

How effective is your marketing strategy? If you’re not getting the results you’d like, it may be time to consider a strategic partnership to power your firm’s growth. SmartAsset AMP uses a holistic approach to help advisors connect with leads. Schedule a demo to learn how you can leverage this digital marketing platform to increase your AUM.
Buying a book of business is another strategy you might use to increase AUM. One of the biggest challenges is determining an appropriate valuation for a book of business that’s for sale. Before you buy, it’s important to understand what you’ll pay and your expected ROI.

Article Sources

All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.

Investment Adviser Association. Investment Adviser Industry Snapshot 2024. Investment Adviser Association, June 2026, https://www.investmentadviser.org/wp-content/uploads/2026/06/Snapshot-2026.pdf.
Morningstar. S&P 500 PR, July 2026, https://www.morningstar.com/indexes/spi/spx/performance.