I’m new to Trading212 and I’ve 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.
I’m struggling to work out the minimum investment for the pies I’ve created, and with the increase in the minimum slice order value (the topics on this are spiralling, and I’ve started a new topic so that my question doesn’t break up the ‘heated discussion’ in full flow) it’s obviously important to get this right.
From what I’ve 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 I’ll need to look at, but if I can offer some hypotheticals hopefully someone can point out where I’m going wrong? In my head I think I’m 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 I’ve calculated what I think the answers are (I can show my workings for extra marks but I don’t 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?
minimum for auto invest according to pie:
Pie A - £4/$4/4Euro
Pie B - £100/$100/100Euro
Pie C - Same as pie B
with the currency depending on your account
Never be afraid to post a question in fear of being stupid.
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 it’s 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 example… This is obviously approaching it from a ‘cost to invest’ angle which isn’t really the point of the increase I guess.
Essentially I’d like to invest more regularly at a lower amount (especially for some more ‘speculative’ 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.
You could create multiple pies.
At a max, 50 pies can be created!!!
(The minimum investment got increased to £1 from £0.2 recently).