Iām new to Trading212 and Iāve held off posting this question due to appearing stupid which is, at least in part, due to the exhaustion of being run-ragged by a two-year-old at Christmas.
Iām struggling to work out the minimum investment for the pies Iāve created, and with the increase in the minimum slice order value (the topics on this are spiralling, and Iāve started a new topic so that my question doesnāt break up the āheated discussionā in full flow) itās obviously important to get this right.
From what Iāve read the smallest slice seems to denote the overall minimum investment, and as a couple of my pies have holdings weighted at 1% this is the lowest Iāll need to look at, but if I can offer some hypotheticals hopefully someone can point out where Iām going wrong? In my head I think Iām not quite understanding why weighting affects the minimum investment more than the number of holdings.
Could someone run through the differences between the minimum investment of these hypothetical pies?
Pie A is 4 slices, all weighted at 25%
Pie B is 4 slices: 2 slices at 25%, 1 slice at 49% and 1 slice at 1%
Pie C is 100 slices at 1% each
In my head Iāve calculated what I think the answers are (I can show my workings for extra marks but I donāt want to volunteer my stupidity out of hand). From my rough musings it seems that fewer slices with a higher weighting means a lower minimum investment, but is the minimum investment more a case of making it easier to break down the amount going into each slice rather than covering the cost of the investing in that slice?
The way you calculate it is by looking at the smallest slice (eg. 2%) and calculating the deposit number that ensures that the minimum slice is worth 1 GBP/Euro/USD.
So for a minimum 2% slice, the minimum deposit would be:
1 GBP / 0.02 = 50 GBP, where 0.02 is the equivalent of 2%.
So a generic formula would be:
Minimum Investment / (Percentage of slice x 100) = Minimum investment in pie per deposit
Which is, minimum investment for a slice divided by percentage of slice in number (non unit), not percentage.
Note, I believe the maximum is 50 slices in a pie.
For what itās worth my rough workings were the same so I obviously got it more than i gave myself credit for.
I kept going round in circles talking myself out of being right based on spurious examples, like why it would be a higher minimum investment for for holdings in Pie B in my example than a pie that has 20 slices at 5% each, for exampleā¦ This is obviously approaching it from a ācost to investā angle which isnāt really the point of the increase I guess.
Essentially Iād like to invest more regularly at a lower amount (especially for some more āspeculativeā pies outside of my core investment strategy) so it may require some adjustments to reduce the minimum investment level to make this achievable rather than accumulating cash in a pie until it hits the required investment threshold.
