- For single-fund goals
- For multi-fund goals
- What can I do if my portfolio has drifted?
- How does it affect goal modifications?
- How will I know which funds have minimum investments?
- Things to note
Some funds have a minimum investment amount set by the fund manager that applies to all investors. This means that every “buy” transaction, be it through a new or recurring investment or auto-rebalancing, must meet or exceed that minimum amount.
Fund detail page showing minimum investment amounts
For single-fund goals
Investing in a fund with a minimum investment requirement works just like any other fund. You can invest in it, hold it, and redeem it as normal: the minimum simply applies each time you make a new purchase.
For multi-fund goals
The minimum investment amount can affect auto-rebalancing and goal modifications. Auto-rebalancing involves selling funds that have become overweight relative to the portfolio’s target allocation, then using the proceeds to buy funds that are underweight. If the rebalancing involves buying a fund with a minimum investment, the proceeds from selling must meet that minimum. If not, we will not be able to buy into that fund as part of the rebalance.
When this happens, we will still do our best to rebalance your portfolio using the other funds. Your portfolio may not immediately match its target allocation, but auto-rebalancing will proceed automatically once conditions allow. Any new investment or redemption you make into the goal will also move your portfolio closer to its target.
If your portfolio drifts from its target allocation for this reason, you will see a notification on your goal page.
Goal page drift callout
What can I do if my portfolio has drifted?
If you see a drift notification on your goal page, here are a few things you can do:
- Make a new investment into the goal: Any new investment is designed to bring your portfolio closer to its target, including buying into funds with minimum investments.
- Set up or maintain a recurring investment plan: Regular investments help keep your portfolio aligned over time.
- Let auto-rebalancing occur naturally: When conditions allow, auto-rebalancing will trigger automatically, and the fund will be purchased accordingly.
If you have a recurring investment or inter-goal transfer from another goal set up for this goal, we will not show a drift notification as the upcoming scheduled transaction is expected to help bring your portfolio back toward its target allocation.
Please note that drifting does not mean something has gone wrong – it means auto-rebalancing is working as intended by only executing trades it can fully complete.
How does it affect goal modifications?
When you modify your goal, we will attempt to rebalance your portfolio to reflect the new target allocation. If this involves buying into a fund with a minimum investment, we will inform you before you confirm.
Modify Goal notification
How will I know which funds have minimum investments?
When creating or modifying a Fund Smart goal, you will see a summary of any funds with minimum investment requirements on the fund allocation page and investment amount page.
For advised portfolios, the same information will be shown where applicable.
Things to note
- Minimum investment requirements are set by the fund manager and cannot be waived. They apply to every purchase of that fund, including all investments and rebalancing transactions (auto-rebalancing, goal modifications, and accepting recommended portfolio changes).
- Every transaction made will move your goal closer to its target allocation, even if auto-rebalancing has not been triggered.