When an Investor joins a fund or strategy, they would need to consider the limits on how much can be invested collectively. In this article, we will explore the capital and equity limits.
- Maximum investment limits based on the Portfolio Management Solution
- Calculating the maximum amount an Investor can invest in a fund or strategy
- Limits set by Portfolio Managers (PM) and Strategy Providers (SP)
- Platform limits based on Trading Reliability Level (TRL)
Maximum investment limits based on Portfolio Management Solution type:
|Maximum Total Equity/AUM||USD 200 000||Unlimited|
|Maximum investment number||Unlimited||200|
In a strategy the Maximum Total Equity includes the Strategy Provider’s and all investments’ equity.
When a fund or strategy reaches limits, it will not be available to new investors, and the investors will encounter an error when trying to invest in the fund.
Calculating the maximum amount an Investor can invest
Maximum amount an Investor can invest = Maximum Total Equity - The total equity of a strategy
For example, let’s assume the total equity of the strategy amounts to USD 190 000.
The maximum investment allowed would be:
= Maximum Total Equity - Total equity of the strategy
= USD 200 000 - USD 190 000
= USD 10 000
Thus, USD 10 000 is the maximum investment allowed for an investor to invest.
- For investments in a fund, the investment limit amount is unlimited, while the number of active investments is limited to 200.
Limits set by Portfolio Managers (PM) and Strategy Providers (SP)
Apart from the maximum limits, Portfolio Managers and Strategy Providers have the option to set up the maximum investment limit when creating a fund or strategy, or even modify the settings to set up these limits.
If the PM or SP does set a maximum investment limit, the limit will be displayed to investors when investing. These limits will be displayed on the web Personal Area and the Exness Investor application.
While PMs and SPs can change the limits at any point in time, the new limits will only be applied to new investments, not existing ones.
Platform limit based on Trading Reliability Level (TRL)
Trading Reliability Level is the score, between 0 to 100, given to a Portfolio Manager and a Strategy Provider based on past trading performances:
- With a high TRL (displayed in green): there are no limitations imposed on the total investment amount.
- Without a high TRL, the maximum amount that one investor can invest across a PM's funds & strategies is limited to USD 200 000.
Note: This limit doesn’t apply to PM’s or SP’s investments to their own funds.